Talen Energy initiated with an Overweight at Barclays

Barclays initiated coverage of Talen Energy with an Overweight rating and $178 price target. The unregulated power producer has a power generation fleet that primarily operates in PJM via the Susquehanna nuclear facility, though Talen also operates low carbon gas fired plants, in addition to coal plants that are becoming a smaller segment of its power portfolio, the analyst tells investors. Talen has “a unique opportunity to take advantage of its fleet concentration in PJM territory” with rising demand, increasing power prices, spark spreads, and a lack of new generation coming online fast enough to meet data center demand, the analyst tells investors.