After bidding Constellation Energy (CEG 3.81%) stock higher yesterday on positive news about a new project, investors are continuing to send the utility stock higher today. While the good news from yesterday is providing some fuel for the rise, an analyst's bullish opinion on Constellation stock is adding to the buying activity.
As of 12:09 a.m. ET, shares of Constellation Energy are up 2.9%.
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Big data behooves Constellation's business
Maintaining an outperform rating, Sophie Karp, an analyst at KeyBanc, boosted the price target on Constellation stock to $417 from $357. According to The Fly, Karp predicated the more auspicious price target on the belief that the growing value of data will contribute to growth in the company's business, since Constellation's assets support data center infrastructure -- and will presumably continue to do so even more in the near future.
As of yesterday's closing price of $389.56, Karp's price target implies upside of 7%.
Operating the largest nuclear fleet in the United States, Constellation has grown brighter on nuclear energy investors' radars when the company announced its plan to restart the nuclear power plant on Three Mile Island to support Microsoft's data center operations.
Is it too late to power your portfolio with Constellation stock?
While nuclear energy upstarts are grabbing the lion's share of attention from those looking for exposure to the growing industry, Constellation stock is a common consideration for more conservative investors, since the company consistently generates profits. Although the analyst's price target is encouraging, investors should take it with a grain of salt, since the time horizon that the Karp has in mind is unclear. Nonetheless, for those interested in a lower-risk nuclear investment, Constellation is a valid option.
