Bank of America just raised its EUR/USD forecast
Investing.com - BofA Securities raised its price target on Talen Energy (NASDAQ:TLN) to $415.00 from $387.00 on Tuesday, while maintaining a Buy rating on the stock. The new target represents a 12% upside from the current price of $369.95. According to InvestingPro data, analysts maintain a Strong Buy consensus with targets ranging from $307 to $436.
The firm updated its earnings per share estimates after marking-to-market power prices and reflecting a $329.17/MW-day capacity price throughout its forecast period. With a market capitalization of $16.9 billion and an overall Financial Health score of "FAIR" from InvestingPro, Talen Energy appears overvalued based on Fair Value analysis.
BofA Securities now forecasts EBITDA of $1,060 million for fiscal year 2025, $1,974 million for fiscal year 2026, and $2,079 million for fiscal year 2027, compared to previous estimates of $1,067 million, $2,020 million, and $2,038 million respectively.
The price target increase reflects both the adjusted EBITDA estimates and an updated valuation methodology, according to the firm.
BofA Securities noted it now includes a discounted cash flow analysis of the confirmed Susquehanna 17-year contract in its valuation rather than including it through an EBITDA multiple.
In other recent news, Talen Energy has made headlines with its announcement to acquire two combined-cycle gas-fired power plants for a net price of $3.5 billion. These plants, located in Pennsylvania and Ohio, are expected to enhance Talen’s operations within the PJM power market. Meanwhile, Talen Energy reported a second-quarter 2025 EBITDA of $90 million, slightly below the expected $95 million due to an extended outage at the Susquehanna facility. Despite this, analysts at Oppenheimer raised their price target for Talen Energy to $405, citing higher capacity revenues. UBS also increased its price target to $399 following the acquisition announcement, noting the potential value addition to the stock. Raymond (NSE:RYMD) James maintained an Outperform rating and raised its price target to $405, highlighting the long-term AWS deal with Talen’s Susquehanna nuclear facility. The AWS agreement has been a focal point, with Oppenheimer previously increasing its price target to $315 due to the upsized power purchase agreement. These developments indicate a period of strategic growth and investment for Talen Energy.
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