Talen Energy rises on deal to buy power stations for $3.5 billion

July 18 (Reuters) - ** Shares of power producer Talen Energy TLN.O rise 21.2% to $320.7

** Company said on Thursday it is acquiring two power plants in Pennsylvania and Ohio for $3.5 billion

** Talen expects the move to boost the company's cash flow by over 40% in 2026

** It will pay $1.46 billion in cash for Caithness Energy's Moxie Freedom Energy Center in Pennsylvania, which controls 1,105 megawatts natural gas-fired combined cycle generation project

** TLN will pay $2.33 billion in cash for the 1,875 MW Guernsey power station in Ohio, which is owned by Caithness and BlackRock

** UBS raises PT to $399 from $366, a 51.1% upside to stock's last close

** Evercore ISI raises PT to $372 from $306, a 40.9% upside to stock's last close

** S&P 500 utilities index .SPLRCU climbs 1.7% to touch record high

** Including session's moves, stock up 59.1% YTD