Talen Energy initiated with a Buy at Daiwa on ‘ground-breaking’ AWS deal

As previously reported, Daiwa initiated coverage of Talen Energy (TLN) with a Buy rating and $248 price target. The firm, which sees “a convincing long-term investment narrative” in U.S. independent power producers amid the bullish long-term power demand outlook, picks Talen, the first in the analyst’s coverage, as “a point of preference given its robust shareholder value accretion and attractive valuation.” The “ground-breaking” agreement Talen signed with Amazon Web Services (AMZN) in March of 2023 “marked a new era” for the group, demonstrating how they can capitalize on significant power price premiums through power purchase agreements to “facilitate the AI revolution,” the analyst tells investors.