Why Constellation Energy Stock Is Tumbling Today

Constellation Energy (CEG) dropped 5.4% after Citigroup slashed its price target from $348 to $297, citing updated modeling assumptions. The downgrade triggered a sharp selloff in the nuclear power generator's shares despite the firm maintaining coverage.

Citigroup's revised target represents a 15% reduction from its previous view, though the specifics of the modeling changes were not detailed in the announcement. The move comes as CEG has positioned itself as a key beneficiary of surging data center power demand, with nuclear energy emerging as a reliable baseload option for AI infrastructure buildouts.

The Motley Fool framed the decline as a potential entry point for investors seeking exposure to nuclear power through an established, cash-generating operator. CEG runs the largest fleet of commercial nuclear reactors in the United States and has inked multiple agreements to supply electricity to hyperscale data centers.