2024-06-14 17:30:45 ET
Summary
- An aggressive price hedging strategy in the northeast market could lead to a jump in cash flow and earnings.
- A US$1bn share buyback supports the stock price.
- The company has substantially de-risked its balance sheet, posting US$1.3bn in assets sales.
- The valuation is close to fair with a 15% upside at 15x P/E (Cash EPS).
- The power purchase deal with Amazon adds to the long-term cash flow base.
Introduction
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For further details see:
Talen Energy: Leveraged To Higher Electricity Prices