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Investing.com - Barclays raised its price target on Constellation Energy shares (NASDAQ:CEG) to $360 from $356 while maintaining an Overweight rating.
The firm said the company’s 2026 investor update fell short of Street expectations for both forward financial guidance and incremental data center contracting. DOJ-related asset sales represented a greater near-term financial headwind than initially expected.The market reaction reflects broader weakness in the stock, which has declined 21.6% over the past six months and is down 20.8% year-to-date, trading at $279.46 with a market capitalization of $101.2 billion.
Street expectations for 2029 earnings per share of $19.79 per share were roughly 12% above the implied guidance. The stock underperformed by approximately 7% following the update, while XLU remained flat during the trading day.
Barclays said the financial plan still appears conservative, with its new earnings per share estimates tracking toward $19 per share in 2029. Management does not contemplate any share repurchases in either the near-term or long-term outlook.
The firm said the $5 billion share repurchase authorization provides optionality for management to redirect cash toward asset acquisitions or new generation as part of a hybrid contracted structure if needed.
In other recent news, Constellation Energy provided its 2026 earnings guidance, forecasting adjusted operating earnings per share between $11 and $12. This guidance fell short of the average analyst estimate of $11.72, leading to investor disappointment despite the company’s plans for capital deployment and growth. In response to the company’s business and earnings outlook, KeyBanc lowered its price target for Constellation Energy to $321 from $417, citing the complexity of the outlook following the Calpine acquisition. Similarly, Mizuho reduced its price target to $300 from $330, maintaining a Neutral rating and pointing to regulatory uncertainty and the absence of a major hyperscaler contract announcement. UBS also lowered its price target to $388 from $420, maintaining a Buy rating, and highlighted investor disappointment over the lack of a PJM power contract and conservative guidance. Meanwhile, Morgan Stanley resumed coverage with an Overweight rating and a price target of $385, emphasizing the potential value from Constellation Energy’s extensive nuclear fleet. These developments reflect various analyst perspectives on the company’s future performance and strategic initiatives.
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