May. 13 at 8:35 PM
Constellation Energy shares fell to
$275.35 during afternoon trading after Argus cut its price target on the stock to
$350 from
$425, while maintaining a Buy rating. The downgrade intensified a two-session post-earnings selloff as analysts and investors reassessed whether CEG deserves the premium valuation it had been trading at versus traditional utility peers.
The weakness was driven by full-year 2026 EPS guidance that came in slightly below Wall Street expectations at the midpoint, alongside rising debt and interest expenses tied to Constellation’s
$16.4B acquisition of Calpine. Net interest expense surged 73.3% YoY to
$253M in Q1, raising concerns about balance sheet pressure and future profitability.
Investors are also weighing ongoing regulatory uncertainty in the PJM market and potential delays tied to the restart of the Crane Clean Energy Center near Three Mile Island, which could impact future growth projects, including a potential power agreement with Microsoft.
$CEG $MSFT