11:44 AM EDT, 03/12/2025 (MT Newswires) -- Talen Energy ( TLN ) is poised for "transformational" opportunities this year, bolstered by higher power prices and increasing demand from data centers, Morgan Stanley said Wednesday in a report.

The company has 11 gas and coal plants and runs the Susquehanna nuclear plant in Pennsylvania, which powers an Amazon ( AMZN ) data center. An expansion of the contract with Amazon ( AMZN ) "could offer $20 to $60 a share of upside depending on pricing and structure," Morgan Stanley said.

New deals with data centers at gas plants "could represent $46 of additional value," the report said.

Catalysts also include a share buyback of over $1 billion through 2026 and more merger and acquisition activity in the sector, the report said.

Morgan Stanley initiated coverage on Talen Energy ( TLN ) with an overweight rating and a $243 price target.

Shares of Talen Energy ( TLN ) jumped 10% in recent trading Wednesday.

Price: 194.26, Change: +17.70, Percent Change: +10.02