Bank of America Securities analyst Ross Fowler has maintained their bullish stance on TLN stock, giving a Buy rating today.
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Ross Fowler has given his Buy rating due to a combination of factors tied to Talen Energy’s latest acquisition and its financial impact. He highlights that the purchase of 2.6 GW of modern, efficient natural gas generation meaningfully enlarges Talen’s overall fleet, improves its operational profile, and strengthens its position in the attractive PJM West market, all with limited anticipated regulatory friction. Fowler also underscores that the deal structure—mixing cash and equity—keeps leverage on track with management’s target while bringing in Energy Capital Partners as a significant equity holder, signaling confidence from a sophisticated industry investor.
Fowler’s analysis emphasizes that the acquired assets are expected to add substantial EBITDA and free cash flow, with management guiding to double‑digit percentage accretion to FCF per share by 2027. He notes that, relative to the high cost of building new gas capacity, buying existing, high‑quality plants is a more economical path to growth and Talen is executing that strategy effectively. In addition, he points to the strategic optionality these plants create for supporting long‑term power contracts with data centers, viewing forthcoming data center development and contracting—especially around the Montour site—as a key upside catalyst. Taken together, these operational, financial, and strategic benefits justify maintaining a Buy rating and a price objective above the current share price.
In another report released today, TipRanks – Google also upgraded the stock to a Buy with a $478.00 price target.