Jefferies analyst Paul Zimbardo CFA maintained a Hold rating on Constellation Energy Corporation yesterday and set a price target of $347.00.
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Paul Zimbardo CFA has given his Hold rating due to a combination of factors influencing Constellation Energy Corporation’s valuation. The company’s stock is considered relatively expensive compared to its peers, trading at a 6-7% free cash flow yield excluding data centers, which is higher than similar companies. This pricing reflects a significant portion of the company’s future data center awards, making it less attractive from a risk-reward perspective.
Another reason for the Hold rating is the company’s reliance on securing multiple large-scale data center deals to justify its current valuation, which adds uncertainty. While there is potential for sustained growth in earnings and EBITDA, this is contingent on successful data center contracts. Without these deals, growth projections would be notably lower. Additionally, the company’s recent performance has been strong, but it has not announced any new deals, which could impact future growth expectations.
In another report released on August 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $328.00 price target.