Why Analysts See More Upside Ahead for Talen Energy (TLN)

Talen Energy Corporation (NASDAQ:TLN) is one of the Trending AI Stocks on Wall Street. On August 11, Raymond James analyst J.R. Weston raised the price target on the stock to $405.00 (from $399.00) while maintaining an Outperform rating.

The price target raise follows Talen’s “compelling mix of stability and upside” with its 10,700 MW portfolio. The portfolio is led by the revamped Susquehanna nuclear facility deal, which is now providing nuclear energy to AWS through 2042.

The firm noted that Talen has predictable revenue streams owing to its long-term contracts, strong capacity auction results, recent RMRs, and downside support through nuclear PTCs.Analysts See AI Data Center Demand Fueling Talen Energy’s (TLN) Nuclear Play

A Nuclear power plant with all its safety & security protocols in place.

“With ~80% baseload generation, TLN benefits from increasing visibility around the revenue composition of its business – long-term PPAs, strong capacity auction results, recent RMRs, downside support via nuclear PTCs, etc. Moreover, the recent ~$3.8 bllion acquisition of ~2.9 GW of efficient PJM CCGTs (Moxie Freedom in Pennsylvania and Guernsey in Ohio) further enhances scale, with pro forma 2026 adj. EBITDA projected above $1.8 billion (RJ well above those levels) and immediate FCF/share accretion of 40% (and ramping after 2026 maintenance). Further, in a market rewarding acquirers (and with tax support for generation M&A deals) – and especially now that Talen’s story and equity currency benefit from the recent AWS deal and strategic CCGT addition – TLN’s M&A potential, either as a target or buyer, adds torque to this play. We maintain our Outperform rating.”

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company.

While we acknowledge the potential of TLN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.

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