New York, Jan 21, 2026, 20:13 EST — Market closed
- CEG closed slightly down, continuing its steep drop from the highs seen last week.
- A price-target downgrade on Wall Street renewed focus on valuation following the recent selloff.
- Debate over PJM power-market rules and data-center demand continues to cast a shadow.
Shares of Constellation Energy Corporation slipped 0.35%, finishing Wednesday at $294.37. The stock is now down roughly 14% since closing on January 15. 1
This matters because Constellation is at the heart of a heated debate over who covers the costs of new power as electricity demand climbs, particularly within PJM Interconnection, the largest U.S. grid. The White House and several governors have pushed for changes that might reshape how PJM prices capacity, a crucial income source for generators. 2
On Tuesday, Wells Fargo analyst Shahriar Pourreza cut his price target for Constellation to $460 from $478 but maintained an Overweight rating, suggesting the stock is poised to outpace its peers. He singled out the company as his “Best IPP Idea,” highlighting “multiple” data-center deals as potential growth drivers. 3
Constellation’s shares dropped 4% on Tuesday before holding firm on Wednesday, hovering close to the lows touched earlier this month as investors absorbed the latest policy news and the revised price target. 4
PJM, the grid operator for 13 states plus Washington, D.C., rolled out a proposal that would require new large power consumers to either supply their own generation or face curtailment during peak stress periods. The move aims to bolster grid reliability amid the rising energy demand from data centers. 5
Equity traders are focused on the capacity market — the auction that compensates power plants for being ready to supply electricity years ahead, rather than on daily electricity prices. Changes to caps or rules can suppress future auction prices, quickly influencing how analysts project earnings for generators heavily tied to PJM.
Constellation ranks among the top U.S. power producers and suppliers, generating electricity from nuclear, hydro, wind, and solar sources, plus gas assets following its acquisition of Calpine. It provides electricity and gas to businesses, households, and public-sector clients across several regions. 6
A securities filing on Jan. 7 revealed Constellation has finalized its acquisition of Calpine. The deal involved issuing 50 million new Constellation shares plus $4.50 billion in cash, after deducting company expenses. Calpine is now a wholly owned subsidiary.
The next move hinges as much on policy as on company performance. Should PJM’s pricing and interconnection rules tighten faster than anticipated, or if a price collar sticks around longer, valuations could erode swiftly. On the other hand, a more lenient outcome or clearer regulations might steady the market, particularly if filings reveal major data-center contracts.
As the market stays closed until Thursday’s open, investors are eyeing updates on PJM’s rule changes and any analyst reactions after Wells Fargo’s downgrade. The next key date for the company is Constellation’s earnings report, set for Feb. 19, per Investing.com. 7
