A pullback in the AI trade has created opportunities for bargain-hunting investors, according to analysts at Bank of America.

Bank of America Corp DE cut its holdings in shares of Talen Energy Corporation (NASDAQ: TLN) by 10.1% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 145,451 shares of the utilities provider's stock after selling 16,400 shares during the

Talen Energy remains a buy, with robust FCF growth visibility driven by data center demand and the Cornerstone acquisition. TLN raised 2026 adj. EBITDA guidance to $2.025–2.225 billion and adj. FCF to $1.2–1.35 billion, excluding Keystone, implying further upside. The 2028/2029 PJM capacity auction and a growing data center pipeline underpin a more predictable, resilient earnings base and margin mix.

Talen Energy raises 2026 guidance and its 2028 cash-flow outlook while advancing grid-connected data centers and preserving merchant upside in PJM.

Talen Energy Corporation is rated Buy with a $575/share 2028 price target, driven by strong capacity auction results and robust FCF projections. TLN benefits from multi-year visibility into rising contracted revenues, with capacity prices at PJM's cap and 20% further upside expected in 2H-2026. Transmission upgrades and in-zone demand growth could narrow the $20/MW-hr PPL basis, potentially boosting FCF yield to 17% or higher by 2028.

Talen Energy NASDAQ: TLN reported second-quarter adjusted EBITDA of $374 million and adjusted free cash flow of $212 million, citing contributions from recently acquired natural gas plants, higher PJM capacity pricing, increased generation volumes and the ramp of its AWS contract.

Talen Energy Corporation (TLN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $3.2 per share. This compares to a loss of $1.19 per share a year ago.

Talen Energy Corporation (TLN) Q2 2026 Earnings Call Transcript

TLN heads into second-quarter results with sharply higher estimates, added gas-fired capacity and a strategy focused on locking in new power demand.

Talen Energy Corporation (TLN) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.