Talen Energy downgraded to Outperform from Buy at Daiwa

Daiwa downgraded Talen Energy (TLN) to Outperform from Buy with a price target of $200, down from $248. The firm says China’s DeepSeek release in January, which likely requires less than 10% of ChatGPT’s training cost, undermined the data center power demand outlook. In addition, Microsoft was reported to have revisited its data center strategy, including cancelling U.S. leases totaling several hundred MWs and delaying lease conversions, the analyst tells investors in a research note. As such, Daiwa believes Talen Energy’s artificial intelligence story is “undermined by headlines.” It expects profit taking in the shares is likely to continue.