Scotiabank Has Positive View of Talen Energy FY2027 Earnings

Key Points

• Scotiabank raised its FY2027 EPS forecast for Talen Energy to $29.11 from $27.28, above the current full-year consensus estimate of $25.07. The firm maintained a “Sector Perform” rating and a $470 price target.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $477.17, despite recent target reductions from Barclays and Jefferies and a “Sell” downgrade from Wall Street Zen.
• Talen Energy’s latest quarterly results fell short of expectations, reporting a $2.00 per-share loss versus consensus EPS of $3.21 and revenue of $747 million versus estimates of $832.81 million. Shares opened at $314.46, near the company’s one-year low of $301.45.

Talen Energy Corporation (NASDAQ:TLN - Free Report) - Scotiabank boosted their FY2027 earnings per share (EPS) estimates for Talen Energy in a note issued to investors on Wednesday, August 19th. Scotiabank analyst A. Weisel now forecasts that the utilities provider will post earnings of $29.11 per share for the year, up from their prior forecast of $27.28. Scotiabank has a "Sector Perform" rating and a $470.00 price objective on the stock. The consensus estimate for Talen Energy's current full-year earnings is $25.07 per share.

Other analysts have also issued research reports about the stock. Barclays cut their target price on shares of Talen Energy from $411.00 to $408.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 28th. Raymond James Financial reiterated an "outperform" rating and set a $457.00 price target on shares of Talen Energy in a report on Monday, April 27th. Wall Street Zen cut Talen Energy from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Jefferies Financial Group reduced their price objective on Talen Energy from $453.00 to $422.00 and set a "hold" rating on the stock in a research report on Monday, July 20th. Finally, Wells Fargo & Company upped their target price on Talen Energy from $482.00 to $501.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $477.17.

Talen Energy Stock Performance

Shares of Talen Energy stock opened at $314.46 on Monday. The firm has a market capitalization of $15.07 billion, a PE ratio of -75.41 and a beta of 1.90. The company has a current ratio of 0.78, a quick ratio of 0.55 and a debt-to-equity ratio of 5.82. The firm's 50 day moving average is $369.15 and its 200 day moving average is $357.29. Talen Energy has a 1 year low of $301.45 and a 1 year high of $451.28.

Talen Energy (NASDAQ:TLN - Get Free Report) last posted its earnings results on Wednesday, August 5th. The utilities provider reported ($2.00) EPS for the quarter, missing analysts' consensus estimates of $3.21 by ($5.21). Talen Energy had a positive return on equity of 43.32% and a negative net margin of 5.38%.The company had revenue of $747.00 million during the quarter, compared to the consensus estimate of $832.81 million.

Institutional Trading of Talen Energy

A number of institutional investors and hedge funds have recently bought and sold shares of TLN. Daiwa Securities Group Inc. boosted its position in Talen Energy by 5.7% during the fourth quarter. Daiwa Securities Group Inc. now owns 671 shares of the utilities provider's stock worth $252,000 after purchasing an additional 36 shares during the period. Ritholtz Wealth Management raised its position in shares of Talen Energy by 3.6% in the first quarter. Ritholtz Wealth Management now owns 1,045 shares of the utilities provider's stock valued at $334,000 after purchasing an additional 36 shares during the period. Compound Planning Inc. raised its position in shares of Talen Energy by 4.7% in the fourth quarter. Compound Planning Inc. now owns 841 shares of the utilities provider's stock valued at $315,000 after purchasing an additional 38 shares during the period. Northwestern Mutual Investment Management Company LLC lifted its stake in shares of Talen Energy by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 10,223 shares of the utilities provider's stock valued at $3,832,000 after buying an additional 39 shares in the last quarter. Finally, Values First Advisors Inc. lifted its stake in shares of Talen Energy by 4.7% during the 1st quarter. Values First Advisors Inc. now owns 979 shares of the utilities provider's stock valued at $312,000 after buying an additional 44 shares in the last quarter. 0.38% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Gizman I. Abbas sold 2,600 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $380.00, for a total transaction of $988,000.00. Following the completion of the transaction, the director owned 2,606 shares of the company's stock, valued at approximately $990,280. This trade represents a 49.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.78% of the company's stock.

About Talen Energy

Talen Energy Inc is an independent power producer that develops and operates a diversified portfolio of thermal and renewable generation facilities across the United States. The company supplies wholesale electricity and related services to utilities, large industrial customers, and power marketers, participating actively in regional markets such as PJM Interconnection and the Electric Reliability Council of Texas (ERCOT). Talen's asset base comprises a mix of natural gas-fired, coal-fired and nuclear generation, supplemented by battery storage and other flexible resources designed to support the evolving needs of the grid.

Established in December 2015 through the combination of the competitive generation businesses previously held by two major utility groups, Talen Energy was structured as a standalone, publicly traded entity on the NASDAQ stock exchange (TLN).

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