Constellation Energy shares tumble after Google nuclear power deal spurs profit‑taking and target cuts
Constellation Energy Corp. fell about 5% on Oct. 8 after its stock rallied more than 12% earlier in the week on the announcement of a 3.59 GW nuclear power purchase agreement with Google. The decline was driven by investors taking profits and analysts lowering price targets, while a regulatory delay added uncertainty. The move came as the broader market slipped and trading volume reached 4.3 million shares.
Why it matters
Goldman Sachs kept a Neutral stance and set a $305 price target, prompting investors to reassess valuation levels. BMO Capital and Scotiabank also trimmed their targets, indicating that the market may have already priced in much of the deal’s upside. The stock’s pullback could limit short‑term upside for traders and affect the pricing of Constellation’s future contracts.
Key facts
- 1Constellation Energy closed at $283.65, down 5.3%, on Oct. 8. news.alphastreet.com
- 2Trading volume was 4.3 million shares. news.alphastreet.com
- 3The company announced a 3.59 gigawatt nuclear power purchase agreement with Google on Oct. 6. investing.com
- 4Goldman Sachs maintained a Neutral rating and set a $305 price target after the Google deal. investing.com
- 5BMO Capital cut its price target to $350 from $379. investing.com
- 6Scotiabank reduced its price target to $355 from $441. investing.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.