Citigroup has just upgraded Constellation Energy $CEG from ‘Neutral’ to ‘Buy’, setting a fresh price target of $232. The move reflects renewed confidence in the company’s positioning amid evolving energy demands and an improving valuation picture. As the U.S. energy landscape shifts toward cleaner and smarter power solutions, $CEG is catching Wall Street’s eye for all the right reasons.
📌 Why the Upgrade Now?
🔹 Attractive Entry Point – After a notable selloff, $CEG shares are trading at levels that analysts see as undervalued. The upside potential is now considered reachable even without new, unannounced growth drivers.
🔹 Growth Levers on the Horizon – Citigroup flagged upcoming opportunities from nuclear plant uprates and capacity expansion. There’s also potential from co-location deals and expansion in Texas through natural gas development.
🔹 Policy Tailwinds – The growing focus on AI-driven power demand and energy policy shifts could act as long-term tailwinds. Constellation is well-positioned to benefit from any structural changes in how and where energy is consumed.
📌 Dividend Snapshot
💰 $CEG currently offers an annual dividend of $1.55 per share, translating to a yield of around 0.72%. The payout remains conservative with a 13% payout ratio—indicating plenty of room for future hikes. Dividend growth over the past year stands at a healthy 20.59%, reflecting management’s commitment to rewarding shareholders while funding growth.
With its strong carbon-free energy portfolio, resilient fundamentals, and newly re-rated upside, $CEG is entering a phase where its value proposition is once again aligned with investor expectations. Citigroup’s upgrade underscores this momentum and puts the stock back on the radar for growth- and income-oriented investors alike.