Talen Energy was initiated by Morgan Stanley with an overweight rating. Talen stock jumped on Wednesday amid a broader rally for nuclear energy stocks.
Also on Wednesday, Amazon, Meta Platforms and Alphabet signed a pledge to triple the global nuclear power supply by 2050.
Talen Energy Growth Drivers
Talen operates the Susquehanna nuclear plant in Pennsylvania and a fleet of 11 gas and coal plants, primarily in the mid-Atlantic market, the Wall Street firm told investors in a research note.
The firm's analysts see an "attractively priced core power plant fleet with multiple credible options for upside," according to TheFly.com's report on the TLN stock initiation.
These include higher power prices, an expanded data-center contract with Amazon, and new data-center contracts at Talen's gas plants, Morgan Stanley said.
The firm's analysts set a $243 price target on Talen stock, along with the overweight rating.
Talen Stock Leads Nuclear Energy Stocks Higher
Shares gapped up 12.8% to 199.09 in Wednesday's stock market trading. Talen Energy stock extended Tuesday's bounce above the 200-day moving average.
Among other nuclear energy stocks, Vistra surged 6.6%. Constellation Energy advanced 3.3%.
Amazon has moved toward using nuclear energy to power its data centers. In 2024, Amazon and Talen Energy struck a $650 million nuclear energy deal, which ran into some regulatory scrutiny.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
