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Investing.com - Melius Research initiated coverage on Talen Energy (NASDAQ:TLN) with a Buy rating and a price target of $427.00 on Wednesday. The target represents potential upside from the current price of $368.16, with InvestingPro data showing the stock has already gained an impressive 83% year-to-date.
The research firm cited Talen’s strategic transformation under new leadership following the company’s emergence from bankruptcy in 2022 as a key factor in its positive outlook. The company, now valued at $17.3 billion, maintains a healthy current ratio of 1.84 and generates annual revenue of $2.1 billion.
Melius highlighted Talen’s focus on investing in data center-powered energy solutions, which aligns with growing demand from artificial intelligence and cloud computing sectors.
The power producer is repurposing its legacy fossil fuel sites for digital infrastructure rather than retiring these facilities, according to Melius Research.
Talen Energy currently operates 12 power plants with a total capacity of 10.7 GW, including a diverse generation mix of nuclear, natural gas, and coal facilities.
In other recent news, Talen Energy has announced a significant acquisition, agreeing to purchase two combined-cycle gas-fired power plants for a net price of $3.5 billion after tax benefits. This acquisition includes the Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio, both situated within the PJM power market. Following this announcement, UBS raised its price target for Talen Energy to $399, citing the acquisition as potentially adding 9% to 16% in value to the stock. Meanwhile, Oppenheimer adjusted its price target to $405, despite Talen’s second-quarter 2025 EBITDA of $90 million falling slightly below expectations due to an extended outage at the Susquehanna facility.
Raymond (NSE:RYMD) James also raised its price target to $405, highlighting the strategic deal with AWS that ensures nuclear energy supply through 2042. Additionally, BofA Securities increased its price target to $415, maintaining a Buy rating and updating earnings per share estimates based on power prices and capacity pricing forecasts. These developments reflect a series of strategic moves by Talen Energy that are capturing the attention of major financial firms.
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