14 Best Multibagger Stocks to Buy According to Hedge Funds

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6. Talen Energy Corporation (NASDAQ:TLN)

Number of Hedge Funds: 80

1Y Return: 205%

Talen Energy is one of the best multibagger stocks according to hedge funds. On July 25, 2025, UBS analyst William Appicelli raised his price target on Talen Energy from $399 to $431, while maintaining a “Buy” rating.

Appicelli tied the upgrade to Talen’s $3.5 billion acquisition of two combined‑cycle gas-fired power plants in Pennsylvania and Ohio, highlighting that the deal was immediately accretive and would extend the runway for capacity growth in the PJM region amid rising power demand for AI and data centers.

The acquisition, financed with approximately $3.8 billion in new debt, adds around 3 gigawatts of dispatchable low-carbon energy to Talen’s portfolio and boosts its forecasted adjusted free cash flow for 2026 from $693 million to $956 million.

Talen Energy Corporation (NASDAQ:TLN) is a Houston-based independent power producer operating roughly 10.7 gigawatts (expanding to 14) of generation assets across nuclear and natural gas facilities in the U.S., with a plan to leverage its infrastructure toward hyperscale data center demand and capital returns.

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