Analyst David Arcaro from Morgan Stanley maintained a Buy rating on Talen Energy Corp (TLN – Research Report) and keeping the price target at $243.00.
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David Arcaro has given his Buy rating due to a combination of factors that suggest Talen Energy Corp’s prospects remain strong despite recent regulatory challenges. The Federal Energy Regulatory Commission (FERC) recently reaffirmed its decision to reject Talen’s proposal to expand the Amazon data center at the Susquehanna nuclear plant. However, Arcaro believes this does not alter the potential for future opportunities with Amazon, as the possibility of recontracting remains viable.
Moreover, Talen has the option to appeal the FERC order to a higher court, although this process may take years. Additionally, FERC is still assessing new collocation rules, which could allow the original behind-the-meter arrangement with Amazon to proceed if regulatory outcomes are favorable. Arcaro also highlights the potential benefits of adjusting the Amazon contract to a front-of-the-meter setup, which could offer operational advantages and financial growth. Therefore, despite the regulatory setback, the overall outlook for Talen Energy Corp remains positive, justifying the Buy rating.
In another report released on March 28, J.P. Morgan also maintained a Buy rating on the stock with a $295.00 price target.