Oppenheimer cuts PT on Talen Energy after regulator rejects Amazon data center agreement

Public Service Enterprise

04/11/2024 15:04

(Updates)
** Electric utility Talen Energy's  TLN.O  shares down 5.1% to
$164.44
    ** Brokerage Oppenheimer ("outperform") cuts PT on company's
shares to $180 from $210, cites higher costs and more risk in
Amazon data center deal
** Federal Energy Regulatory Commission (FERC) on Friday
rejected an amended interconnection agreement for an Amazon data
center connected directly to a nuclear power plant in
Pennsylvania
    ** "However, we believe the AWS data center will still go
through (most likely in-front-of-the-meter), with the biggest
uncertainty being the incremental cost" - Oppenheimer
    ** FERC's ruling weighs on other nuclear-power utilities:
Vistra  VST.N  down 4.9%, Constellation Energy  CEG.O  falls
11.3%, and Public Service Enterprise  PEG.N  drops 3.4%
    ** "Out of the four IPPs, we still see the most value
potential from Talen, assuming that Amazon still opts to move
forward with its data center efforts at Susquehanna" - Jefferies
** Separately, CEG beats Q3 adj EPS est; forecasts FY 2024 adj
EPS between $8.00 and $8.40 vs est $8.43/shr - LSEG

(Reporting by Seher Dareen in Bengaluru)
((Seher.Dareen@thomsonreuters.com;))