Wells Fargo Adjusts Constellation Energy Price Target
Wells Fargo analyst Shahriar Pourreza maintained a 'Buy' rating on Constellation Energy while lowering the price target to $352 from $362.
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CIBC analyst Mark Jarvi has initiated coverage on Constellation Energy with a buy rating and a price target of $343.
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Wells Fargo analyst Shahriar Pourreza maintained a 'Buy' rating on Constellation Energy while lowering the price target to $352 from $362.
Global electricity demand is projected to grow 3.8% next year, driven by AI data centers, manufacturing reshoring, and EV adoption. Solar will lead growth with 600 TWh annually through 2027, while nuclear capacity will expand through plant restarts and uprates. Natural gas serves as a bridge fuel with 48 GW needed by 2035 to meet data center demand. Data center energy consumption could reach 945 TWh by 2030 and 1,200 TWh by 2035.
AI power stocks including Oklo, NuScale, Bloom Energy, and Constellation Energy have declined 7-13% over the past week amid investor sentiment shifts, while energy giants Exxon and Chevron hit all-time highs. The author argues that established energy companies with proven business models and strong dividend histories are preferable to speculative AI power plays with uncertain futures.