** Jefferies raises price target on Talen Energy TLN.O to $436 from $380; shares rise 1.3% to $351 premarket

** New PT represents an upside of 27.8% to stock's last close

** Brokerage action follows the PJM capacity auction to reflect capacity results vs previous estimates

** Brokerage says TLN has proven it can outpace its larger power peers in data center partnership development with its strong Amazon relationship

** Jefferies adds that TLN is the biggest beneficiary of the record-high PJM capacity auction clear

** "We still see an attractive risk/reward anchored by Amazon contract, at least 50% of our stock price" - Jefferies

** Brokerage expects management to sign further deals to capitalize on its balance sheet & diversify

** As of last close, shares are up 72.05% YTD

(Reporting by Katha Kalia in Bengaluru)

((Katha.Kalia@thomsonreuters.com))