Wells Fargo Highlights Talen Energy (TLN) as Key Player in PJM Colocation, Resource Adequacy Debates

Talen Energy Corporation (NASDAQ:TLN) is one of the best IPO stocks to buy right now. On January 20, Wells Fargo analyst Shahriar Pourreza raised the firm’s price target for Talen Energy to $506 from $445 with an Overweight rating. Pourreza identified Talen Energy as a key participant in ongoing debates regarding PJM colocation and resource adequacy.

The firm’s positive stance is supported by the completion of 2025 deals, the announcement of a 2026 ECP transaction, and a continued focus on the company’s cash flywheel. Wells Fargo further noted that the company’s fundamental outlook remains consistent with its previous assessment.

On January 16, Morgan Stanley raised its price target for Talen Energy Corporation (NASDAQ:TLN) to $470 from $443 with an Overweight rating. This update followed the company’s acquisition of 2.6 GW of gas generation assets in the PJM market from Energy Capital Partners. The firm noted that the deal’s strategic rationale (expanding options for data center agreements and increasing exposure to rising power prices) is a positive development, stating that the current valuation appears highly attractive.

Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company that produces and sells electricity, capacity, and ancillary services into wholesale power markets in the US. It operates nuclear, fossil, oil, natural gas, and coal power plants.

While we acknowledge the potential of TLN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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