BofA Maintains Buy on Talen Energy (TLN) Following Mark-to-Market Power Price Adjustments

Talen Energy Corporation (NASDAQ:TLN) ranks among the best performing utilities stocks to buy now. BofA Securities maintained its Buy rating on Talen Energy Corporation (NASDAQ:TLN) and raised its price target from $387 to $415 on August 12. The firm revised its earnings per share projections following marking-to-market power pricing to reflect a $329.17/MW-day capacity price for the forecast period.

In contrast to its earlier projections of $1,067 million, $2,020 million, and $2,038 million, respectively, BofA Securities now projects EBITDA of $1,060 million for fiscal year 2025, $1,974 million for fiscal year 2026, and $2,079 million for fiscal year 2027.

The firm also mentioned that instead of using an EBITDA multiple to determine its valuation, it now incorporates a discounted cash flow analysis of the official Susquehanna 17-year deal.

Based in Houston, Texas, Talen Energy Corporation (NASDAQ:TLN) is an independent power producer that operates approximately 10.7 gigawatts of generation assets spanning natural gas and nuclear facilities in the U.S.

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Disclosure: None. This article is originally published at Insider Monkey.