00:00 Brad Smith
It’s now time for some of today’s trending tickers. We are watching Talon Energy and Urban Outfitters. Joining me now, we’ve got Yahoo Finance senior reporter, Alexandra Canal. Ali, let’s first go to Talon Energy and set the stage there. Talon Energy shares, they are rising as the company expands its nuclear energy pact with Amazon. The energy company provides carbon-free energy to Amazon Web Services data centers. There you’re taking a look at Talon Energy shares catching a bid to the tune of about 6.8% right now.
00:36 Alexandra Canal
Yeah, Brad. And per this deal, Talon Energy will supply nearly 2,000 megawatts of electricity to AWS data centers. So the long-term agreement runs through 2042. So it’s a big upside benefit for both sides. One, it helps Talon secure steady long-term revenue, and two, it helps Amazon meet those carbon-free energy goals on the heels of that booming AI and cloud infrastructure demand. And to that point, US electricity demand is rising for the first time in 20 years, largely driven by data centers and AI growth. We’ve seen similar deals within the industry. Constellation Energy and Meta, for example, inked a deal that will extend the life of a nuclear reactor in Illinois by 20 years. And investors clearly liking what they see. Talon Energy is up 7% as you mentioned, and we’re seeing it trade near the high end of its 52-week range as well.
01:41 Brad Smith
Yeah, long-term steady source of revenue there anticipating coming in from this deal here. We’re going to be watching that, plus a good Philadelphia-based company here that we got on the agenda. Urban Outfitters getting an upgrade to outperform from neutral at Baird. The firm citing Urban’s strong long-term growth plan, especially with the strength of its rental service, newly here. Shares of Urban Outfitters, URBN, up by about 1.8% right now.
02:16 Alexandra Canal
Yeah, go birds here, Brad.
02:21 Brad Smith
Yeah, go Birds territory trade.
02:25 Alexandra Canal
Go Birds territory. Besides the rating increase, we also saw a price target raise to 90 bucks a share from the prior $75. This implies potential upside of about 30% based on where we’re at today. Although this is on the high end of analyst estimates we’ve seen over the past month, a few Wall Street strategists turn bullish on this stock. Outside of Baird, Jefferies upgraded to hold from underperform, JP Morgan upgraded to overweight from neutral, and then we also saw Wells Fargo maintain its equal weight rating on those shares. And when we compile all the analysts that Bloomberg tracks, we have six buys, seven holds, and one sell. You mentioned newly there, and that’s been a great tailwind for Urban. I have several friends who use it for work, for play, for weddings. They’re a big fan. It’s a competitor to Rent the Runway, and it’s really just another lever that this company can pull, especially when you have tariffs in the background. We had the CPI print from this morning. We are not seeing quite an impact yet on apparel, although clothing is one of the biggest categories that remain at risk for potential price increases. And economists who I’ve been speaking with have said we probably won’t see increases until June or July. So, potentially more pain ahead there. For now, it seems to be okay, but for a company like Urban that does have clothing within their inventory, that is a risk.
04:16 Brad Smith
Perhaps some of the same themes that play within that division newly within Urban that we were hearing about from the Rent the Runway CEO, Jennifer Hyman, last week. If you haven’t seen that interview, you should go check it out. Great to have her in studio with us. Great to have you here in studio with us as well, Ali. Thank you. You can scan the QR code below to track the best and worst performing stocks of the session with Yahoo Finance’s trending tickers page.
