00:00 Brad Smith
Now it’s time to get some of today’s trend standby people. We are watching Talon Energy and Urban Outfitters. Join me now and we have Yahoo Finance Senior Reporter Alexandra Canal. Ali, let’s go to Talon Energy first and set the stage there. Talon Energy shares, which are rising as the company expands its nuclear energy deal with Amazon. Energy companies provide carbon-free energy to Amazon Web Services data centers. There, you’re looking at Talon Energy stock, with the current bidding of about 6.8%.
00:36 Alexandra Canal
Yes, Brad. According to the deal, Talon Energy will provide nearly 2,000 megawatts of electricity to AWS data centers. Therefore, the long-term agreement continues until 2042. Therefore, this is a great upward gain for both sides. First, it helps the paw ensure stable long-term revenue, and second, it helps Amazon achieve those carbon-free energy goals amid the thriving demand for AI and cloud infrastructure. By then, U.S. electricity demand increased for the first time in 20 years, largely driven by data center and AI growth. We have seen similar deals in the industry. For example, Constellation Energy and Metadata signed a deal to extend the lifespan of Illinois nuclear reactors by 20 years. Investors obviously like what they see. As you mentioned, Talon Energy grew 7%, and we see its deals near the high end of its 52-week range.
01:41 Brad Smith
Yes, the long-term stable revenue stream there is expected to come from here. We’re going to watch this here, plus a great company that we’re getting the agenda here. Urban Outfitters gets upgraded from Baird’s Neutral to run and run. The company invoked Urban’s strong long-term growth plan, especially with the strength of its rental services, here recently. Urban Outfitters’ shares are currently growing by about 1.8%.
02:16 Alexandra Canal
Yes, Brad goes here.
02:21 Brad Smith
Yes, go to the bird territory for dealing.
02:25 Alexandra Canal
Go to bird territory. In addition to the rating improvement, we also see that the price target will increase to $90 per share compared to the first $75. This means that based on where we are today, the potential upside is about 30%. While this is the high-end that analysts have estimated in the past month, some Wall Street strategists are bullish on this stock. Outside Baird, Jefferies went from underperforming, JP Morgan went from neutral to overweight, and then we also saw Wells Fargo weigh equally on these stocks. When we compile all the analysts at Bloomberg Trace, we have six buys, seven holds and one sells. You mentioned there that it was a huge headwind for Urban. I have a few friends who use it for work, play, weddings. They are loyal fans. This is a competitor to renting a runway, which is really just another leverage the company can pull, especially when you are in the backstage about taxes. We have CPI prints this morning. Although clothing is one of the biggest categories that are still in the risk of potential price increases, we have not seen any impact on clothing yet. The economists I’ve been talking to say that until June or July, we may not see an increase. Therefore, it may be more painful. For now, this seems OK, but for companies like Urban that do have clothes in stock, it’s a risk.
04:16 Brad Smith
Last week, we heard from rent CEO Jennifer Hyman some of the themes played within the New Territories perhaps. If you haven’t seen this interview, you should check it out. Very happy to be in the studio with her. I’m glad you’re in the studio with us, Ali. Thanks. You can scan the QR code below to track the best and worst stocks of your meetings using Yahoo Finance’s Trend Standby page.
