Evercore ISI analyst Durgesh Chopra has reiterated their bullish stance on TLN stock, giving a Buy rating today.
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Durgesh Chopra has given his Buy rating due to a combination of factors that highlight Talen Energy Corp’s strategic moves and financial prospects. The acquisition of Moxie Freedom and Guernsey CCGTs for $3.5 billion is a significant step, as it is expected to be immediately accretive to free cash flow by fiscal year 2026, enhancing the company’s cash flow by over 50% through 2029. This acquisition, despite appearing costly on a per-kilowatt basis compared to peers, involves some of the youngest and most efficient assets in the market, which positions Talen advantageously.
Additionally, the expansion of Talen’s fleet with these assets increases its annual generation capacity by approximately 50%, strengthening its platform for large load contracting. This positions Talen to capitalize on the growing demand from AI and data centers, particularly in fast-growing markets like Pennsylvania and Ohio. The company’s ability to provide reliable and resilient gigawatt-scale solutions further supports its strategic positioning. Consequently, these developments have led to an increase in the price target to $372, reflecting a strong growth outlook and a promising return on investment.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $380.00 price target.
TLN’s price has also changed moderately for the past six months – from $234.950 to $264.000, which is a 12.36% increase.