Equity Research2026
Talen Energy: Where Power Meets Compute
An Outperform initiation on Talen Energy, with 28.4% upside to a $478 price target as AI-driven power demand strengthens its data centre power business.
Findings
- 01AI-driven data centre demand is creating power supply gaps, strengthening the case for on-site generation.
- 02Talen's $18B, 17-year AWS PPA provides long-term contracted cash flows from its nuclear capacity.
- 03Normalising a $501M non-cash charge produces $6.17 adjusted EPS for FY2025.
- 04Blended valuation supports a $478 price target, implying 28.4% upside.