Scotiabank Modestly Bullish on Talen Energy (TLN) Amid Attractive Valuation Following Three Gas-Fired Power Plants Acquisition

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On January 16, 2026, Scotiabank raised its terms people connected Talen Energy Corporation (NASDAQ:TLN) from $428 to $463, portion reiterating its ‘Sector Perform’ rating. The update followed the company’s acquisition of 3 gas-fired powerfulness plants from Energy Capital Partners, an acquisition that adds astir 2.6 GW of PJM capacity. The concern steadfast highlighted the charismatic valuation of 6.6x EBITDA, modestly beneath caller deals. The valuation offers a important discount to peers astatine astir 9-11x. Furthermore, the steadfast raised its EBITDA and escaped currency travel per stock estimates by astir 25% owed to beardown financing and geographic diversification into Ohio and Indiana.

The woody includes $3.45 cardinal successful full information that breaks down to $2.55 cardinal successful currency and $900 cardinal successful Talen Energy Corporation (NASDAQ:TLN) stock. As a effect of this acquisition, implicit 15% yearly adjusted escaped currency travel per stock maturation is expected done 2030. While Scotiabank views the terms of $1,344/kW arsenic higher than humanities transactions, the steadfast remains affirmative connected the deal. However, the steadfast cautioned astir elevated PJM exposure, which remains a hazard compared to peers with ERCOT operations.

Talen Energy Corporation (NASDAQ:TLN) focuses connected operating powerfulness infrastructure and producing and selling electricity, capacity, and ancillary services done its subsidiaries. The institution focuses connected wholesale markets and strategical enlargement successful the PJM Interconnection.

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