Constellation Energy Jumps on Morgan Stanley Overweight and $385 Target

Overview

• Morgan Stanley, which issued its call Wednesday, started Constellation Energy at Overweight with a $385 price target, lifting the stock about 4% to $307.04.
• Morgan Stanley’s valuation ties $70 per share to future data‑center power contracts, $40 to higher power prices, and $22 to clean‑energy credits.
• The bank points to Constellation’s roughly 22‑gigawatt U.S. nuclear fleet and 20‑year deals with Microsoft and Meta as a base to win more long‑term data‑center supply agreements.
• Attention now turns to the company’s March 31 strategy and outlook event, which the analysts flagged as a potential moment for new contract announcements after management held back 2026 guidance in February.
• As the portfolio shifts, Constellation agreed to sell about 4.4 gigawatts of natural‑gas plants in PJM, the Mid‑Atlantic power market, to LS Power for $5 billion tied to its Calpine deal.