HSBC initiated coverage of Constellation Energy Corp. with a buy rating and a $335.00 price target. The bank projects the company’s EBITDA will grow at an 11% compound annual growth rate (CAGR) from 2026 to 2030, above the average for its peers. It forecasts EPS will grow at a 19% CAGR over the same period, also above the peer average. HSBC also forecasts $14 billion in share buybacks over the next five years.
Constellation’s outlook is supported in part by plans to expand nuclear output. A long-term power purchase agreement with Alphabet will supply electricity to the company’s data centers and provide revenue certainty for investments to upgrade nuclear plant capacity. Rising demand from data centers for clean, reliable power has highlighted the value of nuclear energy in Constellation’s portfolio.