10 AI Stocks Making Waves on Wall Street

4. Talen Energy Corporation (NASDAQ:TLN)

Number of Hedge Fund Holders: 68

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company. On February 3^rd, BofA initiated coverage of the stock with a “Buy” rating and a $253 price target. The analyst told investors in a research note that the firm is “bullish” on Talen’s opportunities from data center growth, particularly the lucrative AWS (AMZN) data center contract for the Susquehanna nuclear plant. Other two factors it is optimistic about are the newly proposed RMR rates and the prospect of higher power prices. Talen has reached a reliability-must-run (RMR) agreement with PJM Interconnection, which should provide “a secure and accretive revenue stream”. The contract could guarantee $110 million in revenues from May 2025 through 2029 once approved. Despite the competition and the new price cap, “higher prices would more accurately reflect market dynamics,” noted the analyst.