BofA Raises Vistra (VST) Price Target, Maintains Buy Rating

On June 4, Bank of America raised its price target on Vistra Corp. (NYSE:VST) to $193 from $167, reiterating a Buy rating as investor attention sharpens around the utility sector’s role in powering data infrastructure. The move follows a major industry development in which Constellation Energy secured a 20-year power purchase agreement with Meta for electricity from its Clinton nuclear facility.

An aerial view of a nuclear plant, its domes casting a unique shadow.

The deal, seen as a milestone for nuclear-powered datacenter partnerships, has prompted BofA to reassess valuation metrics across the sector. As a result, the firm revised its nuclear segment multiple for Vistra from 11x to 14x, reflecting higher expectations for similar commercial agreements involving clean, dispatchable energy.

Analysts believe Vistra Corp. (NYSE:VST) is well-positioned to benefit from this emerging demand trend, driven by rapid AI adoption and the rising electricity needs of large-scale data centers. They also pointed to a favorable regulatory environment that is beginning to align with commercial incentives, creating a strong foundation for future announcements.

BofA anticipates that additional datacenter partnerships involving nuclear or other low-carbon generation are imminent, with Vistra likely to play a leading role. The convergence of increased infrastructure investment and growing interest in carbon-free power solutions enhances the visibility of earnings potential. The revised price target underscores Vistra’s strategic leverage in a shifting energy landscape, where utility-scale nuclear capacity is becoming increasingly critical to supporting digital growth at scale.

While we acknowledge the potential of VST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.