Utility stocks have been ripping higher all year as artificial intelligence demands rise
Utility stocks have been getting increased exposure lately, as artificial intelligence (AI) demands strain power grids across the globe. Analysts are reacting in real time, with electric utility stocks Constellation Energy Corp (NASDAQ:CEG) and Vistra Corp (NYSE:VST) both receiving price-target hikes today.
CEG was last seen up 4.5% to trade at $277.24, and earlier hit a record high of $279.30, after RBC hiked its price target to $272 from $215. Last week, the stock received six price-target hikes in the wake of the company’s 20-year purchase agreement with Microsoft (MSFT) to restart the nuclear plant Three Mile Island. The shares are now up 141% in 2024 and 165% in the last 12 months.
VST is up 6% to trade at $132.91, after RBC chimed in again with a price-target hike to $141 from $105. The shares earlier hit a record high of $135.29, and are now up 251% in 2024 alone.
There’s not a single “sell” rating to be found among CEG and VST, but both stock’s consensus 12-month price target sits below their current perch, implying more bull notes could be in store that could add tailwinds to the outperformers.