UBS Raises Talen Target to $431 After $3.5B Power Plant Buy

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.

UBS Raises Talen Target to $431 After $3.5B Power Plant Buy

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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.

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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While we acknowledge the potential of TLN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TLN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.