CEG Stock Rises Premarket: Trump Administration Delays Closure Of Two Pennsylvania Power Plants

• The units were slated to be closed on May 31. 
• The revised directive comes as the U.S. government predicts power outages could increase 100-fold in 2030.
• CEG stock has a 12-month price target of $365.73 based on estimates from multiple analysts, indicating an upside potential of nearly 28%.

Shares of Constellation Energy Corp. (CEG) climbed 1% higher in Friday’s premarket trade after the Trump administration ordered two units of its fossil fuel plants in Pennsylvania to remain operational.

U.S. Secretary of Energy Chris Wright issued an emergency order on Thursday directing PJM Interconnection (PJM), in coordination with Constellation Energy, to ensure Units 3 and 4 of the Eddystone Generating Station in Pennsylvania remain operational beyond the May 31 deadline.

The order is effective until 22 August, the statement said.

CEG To Keep Units Running For Grid Access

The revised directive comes as the U.S. government predicts power outages could increase 100-fold in 2030, saying it would help “minimize costs for the American people.”

“The energy sources that perform when you need them most are inherently the most valuable—that's why natural gas and oil were valuable during peak capacity events this past year,” Wright said. “This emergency order will mitigate the risk of blackouts and help maintain affordable, reliable, and secure electricity access across the region,” he added.

The Trump administration has invoked emergency powers to delay the retirement of several aging coal- and natural gas-fired power plants in recent months, citing the need to maintain grid reliability.

Trump has also pushed for expanded support for fossil fuels and increased domestic energy production, after campaigning on his signature slogan “drill, baby, drill.”

Wall Street Turns Pessimistic On Utilities

Earlier on Thursday, Morgan Stanley lowered the price target on Constellation Energy to $359 from $361 and kept an ‘Overweight’ rating on the shares. The analyst said it had updated its price targets for regulated and diversified utilities in North America in April, while noting that utility companies underperformed the benchmark S&P 500 this month.

Meanwhile, the stock has a 12-month price target of $365.73, indicating an upside potential of nearly 28%, according to data from Koyfin. Of the 21 analysts covering the stock, 17 have a rating of ‘Buy’ or higher, 3 have a ‘Hold’ rating, and 1 has a ‘Sell’ rating.

CEG Stock: Retail Take

On Stocktwits, retail sentiment around CEG shares was in the ‘bullish’ territory at the time of writing amid ‘high’ message volumes.

The company’s shares have declined nearly 22% this year.

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