Goldman Sachs initiates Talen Energy with Buy rating and $499 price target

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โดย Seeking Alpha·Read original
Summary · why it matters

Goldman Sachs initiated coverage of Talen Energy with a Buy rating and a $499 price target, citing structural supply-and-demand tightness in the PJM regional power grid. Analyst Carly Davenport noted that PJM hosts about 35% of existing U.S. data center capacity, and the combination of heavy concentration, recent power plant retirements, and timing constraints on new generation has tightened local power supply and demand, driving PJM power prices higher. Davenport believes Talen's 17-year Amazon Web Services power purchase agreement has structurally de-risked cash flows, its 99% PJM exposure offers the most direct leverage to tightening fundamentals, and its smaller EBITDA base means incremental PPAs drive outsized uplift, all at an undemanding valuation of about 9.1 times EV/EBITDA. Constellation Energy was initiated with a Neutral rating and a $305 price target, as Davenport sees its premium valuation already reflecting nuclear scarcity value, PPA optionality, and Calpine synergies. Talen Energy shares rose 5.5% in Thursday's trading.

Impact on stocks 4

Energy Transition & Power Demand▲ · 2 stocks
Talen Energy Corporation
TLN
▲ PositiveCapitalrelevance

Goldman Sachs initiated coverage with a Buy rating and $499 price target, citing structural supply-demand tightness in PJM and de-risked cash flows from AWS PPA.

Constellation Energy Corp
CEG
± MixedCapitalrelevance

Initiated with Neutral rating and $305 price target, mentioned as comparison for valuation and nuclear scarcity value.

Artificial Intelligence▲ · 1 stocks
Financials▲ · 1 stocks

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