New York, January 9, 2026, 17:59 EST — After-hours
- CEG shares rose about 6% after TD Cowen started coverage with a Buy rating and $440 target
- Analysts flagged contracting strength and data-center demand as near-term drivers
- Investors now look to the next earnings update, expected mid-February
Constellation Energy shares climbed 6.1% to $342.52 in after-hours trading on Friday, extending a late-week rally after TD Cowen initiated coverage with a Buy rating and a $440 price target.
The call landed as investors try to price a U.S. power market that is tightening again, with data-center buildouts pushing load forecasts higher. TD Cowen said Constellation could keep signing power contracts above forward market prices through 2026, and argued worries about “behind-the-meter” data-center power setups — on-site generation that can bypass the grid — look “overstated.” 1
Constellation said this week it completed its acquisition of Calpine from Energy Capital Partners, creating what it called the nation’s largest power producer with 55 gigawatts of capacity across nuclear, natural gas and geothermal assets. “This isn’t just about two great companies coming together,” CEO Joe Dominguez said in the company statement. 2
TD Cowen also pointed to what it described as a better-than-expected antitrust settlement outcome, with divestitures limited relative to the size of the deal. It said strong demand could support “spark spreads” — the margin between power prices and fuel costs — and capacity prices, which are payments for keeping generation available. 1
Traders will want to see whether the combined fleet translates into steadier cash flow and more long-term power purchase agreements, or PPAs, as large users lock in supply. That matters for Constellation because the stock has become a proxy for how far buyers will go to secure round-the-clock electricity.
But the setup cuts both ways. A faster buildout of new generation, softer demand, or tougher-than-expected regulatory limits on contract structures could cool pricing power, and integration hiccups could delay expected gains.
CEG traded between $323.70 and $346.22 during Friday’s session, a wide band that underscored how sensitive the name has become to incremental headlines on contracting and policy.
Next up is Constellation’s next earnings report, which Nasdaq data currently estimates around Feb. 17, when investors will look for early details on Calpine integration and any updated outlook on contracting for large commercial customers. 3
