11:29 AM EST, 12/09/2024 (MT Newswires) -- Talen Energy's ( TLN ) tailwinds remain strong as its management is focusing on new opportunities to boost shareholder value, Oppenheimer said in a note to clients on Monday.

Those opportunities include a "potential PPA for Susquehanna unit #2, the potential for a gas plant acquisition(s) (with a data center colocation agreement), and potential new builds (less immediate)," the note said.

The investment firm raised Talen's target price to $250 from $225, while keeping its outperform rating.

"The improved power markets and increased demand for data centers, have created additional avenues of upside," the note said.

Also, the company's management is still returning "meaningful capital," the investment firm said.

Talen has agreed to buy back $600 million of shares from Rubric Capital by increasing its term loan B, the note said, adding the deal will allow Talen to "continue to transition away from its post-restructuring capital structure."

The company will have about $1.2 billion of buyback capacity after the Rubric repurchase and isn't likely to raise debt again to buy back shares, Oppenheimer said.

Price: 220.44, Change: -0.97, Percent Change: -0.44