Morgan Stanley analyst David Arcaro maintained a Buy rating on Talen Energy Corp today and set a price target of $430.00.
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David Arcaro has given his Buy rating due to a combination of factors that suggest a positive outlook for Talen Energy Corp. Despite lowering estimates for 2025, the company’s guidance for 2026 and 2027 aligns with market expectations, and there is potential for upside beyond that. This optimism is partly driven by the acquisition of two combined cycle gas turbines, which are expected to significantly boost EBITDA in 2026 and beyond.
Additionally, Talen Energy stands to benefit from higher PJM capacity prices and increased power prices, which are projected to contribute substantially to the company’s earnings. The management’s constructive messages regarding key themes such as power prices, data center deals, and potential mergers and acquisitions further support the Buy rating. As a result, the price target has been increased to $430 per share, reflecting confidence in the company’s strategic direction and financial prospects.
In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $410.00 price target.