New York, January 9, 2026, 14:44 EST — Regular session
- Constellation Energy shares rose about 5.6% in afternoon trading.
- TD Cowen initiated coverage with a buy rating and a $440 price target.
- The Calpine deal’s closing and fresh Big Tech nuclear contracting kept the sector bid.
Constellation Energy Corp shares were up 5.6% at $340.51 in afternoon trading on Friday, extending a sharp rally in U.S. power producers as investors latched onto new long-term demand signals and a fresh bullish call on the stock.
The move matters because the market is treating reliable generation — especially nuclear and flexible gas plants — as scarce again. Data centers and new industrial loads are pushing utilities and generators back into the spotlight, and investors are paying up for companies that can sign long-term contracts.
Constellation sits in the middle of that trade. It runs the country’s biggest nuclear fleet and now has a larger gas and geothermal footprint after buying Calpine, giving it more ways to sell power and capacity across regions where prices can move fast.
TD Cowen initiated coverage with a buy rating and a $440 target, saying Calpine integration opens a “compelling opportunity for contracting,” and flagging upside from gas power purchase agreements — long-term power sales contracts — even as it warned regulatory risk stays “elevated.” 1
Constellation said on Jan. 7 it completed its acquisition of Calpine from Energy Capital Partners, creating what it called the nation’s largest electricity producer with 55 gigawatts of generating capacity and about 2.5 million retail and business customers. Chief executive Joe Dominguez said U.S. energy demand is “surging,” while Calpine CEO Andrew Novotny called the combination an “exciting day” for customers and communities. 2
The sector got another shove after Meta Platforms said it struck 20-year agreements to buy power from three Vistra nuclear plants and to support reactor development with Oklo and TerraPower. Vistra shares were up about 10.9% and Oklo rose about 7.4% on Friday, while Meta was slightly higher. 3
Regulators are still part of the story. The Justice Department cleared Constellation’s Calpine deal last month under a settlement that required divestitures at several plants, a reminder that market-power scrutiny can reshape the economics of big generation tie-ups. 4
Still, the upside case comes with strings. Calpine integration needs to go cleanly, and more exposure to gas-fired output means earnings can swing with fuel and power prices; any cooling in data-center contracting, or tougher oversight of generator deals, would hit sentiment first.
Investors are also watching Constellation’s debt clean-up tied to the transaction: the company said its private exchange offers and related consent solicitations for several Calpine notes are set to expire at 5 p.m. New York time on Jan. 12, with settlement expected about the third business day after that.
