Talen Energy Corporation (NASDAQ:TLN) is included among the 12 Best Utility Stocks to Buy Now According to Hedge Funds.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company that owns and operates nearly 16 GW of power infrastructure in the United States.
On June 23, Jefferies downgraded Talen Energy Corporation (NASDAQ:TLN) from ‘Buy’ to ‘Hold’, but boosted its price objective on the stock from $409 to $453. The revised target reflects an upside of over 12% from the current price level.
According to Jefferies, the downgrade was driven by valuation. TLN soared by over 30% between June 10 and June 22, and the analyst believes that the recent outperformance has left the stock fairly valued. Moreover, the firm also sees a more challenging outlook for securing contracts for existing gas-fired power plants.
Talen Energy Corporation (NASDAQ:TLN) garnered significant investor attention on June 15 when the company announced that it had completed the acquisition of the Lawrenceburg Power Plant in Indiana and the Waterford Energy Center and Darby Generating Station in Ohio from Energy Capital Partners. The strategic move has expanded the utility’s portfolio to nearly 16 GW, of which 35% stems from combined-cycle gas turbine (CCGT) power plants.
Terry Nutt, President of Talen Energy Corporation (NASDAQ:TLN), commented:
“We are pleased to complete this strategic acquisition. These assets add efficient baseload generation to our portfolio, expand our presence in the western PJM market, and further diversify our fleet. The acquisition is immediately accretive, adding over 15% to our cash flow per share, and strengthens our line of sight to delivering more than $40 per share of annual free cash flow by 2028. We look forward to the contributions the plants and their teams will make as part of Talen.”
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