Talen Energy’s shares fell to a 52-week low of $301.35 on Friday, extending declines that have pushed the stock down nearly 19% over the past 12 months and 18% year-to-date.
The U.S. power producer reported a second-quarter loss of $2.00 per share on revenue of $747 million, though adjusted EBITDA reached $374 million and adjusted free cash flow totaled $214 million. The company raised its full-year outlook following the June completion of its acquisition of Cornerstone, a deal aimed at expanding its generation portfolio.
Mizuho initiated coverage of Talen Energy with an outperform rating and a $405 price target, citing the company’s exposure to the PJM regional market, where power demand has tightened. Analysts also highlighted Talen’s Susquehanna nuclear plant, which operates under a power purchase agreement with Amazon and contributes to steady cash flow.
InvestingPro data indicate the stock is trading below fair value, with 17 ProTips flagging potential valuation discrepancies. The shares last traded at $301.31, down 1.42% in afternoon trading.
