Cramer Calls Constellation Energy ‘Dangerously Expensive’ as TD Cowen Sets $440 Target

Overview

• Jim Cramer said Constellation Energy looks dangerously expensive, noting a slide from about $353 to $322 and a valuation near 28 times this year’s earnings.
• TD Cowen initiated coverage on January 9 with a $440 price target, citing Calpine integration as a compelling contracting opportunity and potential gas PPA upside through 2026.
• The firm maintained a positive outlook but flagged elevated regulatory risk for the stock.
• Aristotle Atlantic Partners’ Q3 2025 letter described Constellation as the largest U.S. carbon‑free producer with the nation’s biggest nuclear fleet following its 2022 spin from Exelon.
• The investor letter argued a valuation premium is justified by long‑term PPAs with hyperscalers, favorable legislation supporting nuclear and clean hydrogen, strong cash flow, and AI‑driven demand.