Constellation Energy Stock Surges on Analyst Upgrade Amid AI and Nuclear Energy Hype

Constellation Energy (CEG) shares jumped 4.9% following a bullish upgrade from Seaport Global Securities analyst Angie Storozynski, who set a $407 price target—an 8% upside from current levels. The rally underscores market enthusiasm for nuclear energy's role in powering AI infrastructure, though Storozynski's thesis hinges more on financial engineering than reactor physics.

The impending Calpine merger, expected to close within 30 days, promises earnings growth while leveraging tax advantages. "Merger costs largely shield the combined entity from cash taxes," Storozynski noted, defending Constellation's premium valuation versus peers like Vistra (VST). At 37x trailing earnings, skeptics question whether the stock's AI-driven momentum outweighs fundamental concerns.