Seaport starts Talen Energy with a Buy, sees as good M&A fit

As previously reported, Seaport Research initiated coverage of Talen Energy (TLNE) with a Buy rating and $71 price target. Talen’s Susquehanna is one of the most efficient nuclear plants in the U.S. and the site in the Northeast is now being pitched as a first-ever mega-scale digital campus, Cumulus, with up to 950MW in computing capacity directly supplied with nuclear power, the analyst tells investors. The firm struggles with Talen’s growing earnings concentration at Susquehanna, but sees a likely merger with another independent power producer addressing the risk and argues that Vistra (VST), Constellation Energy (CEG) or privately-owned Calpine “should be a good fit” for Talen.