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. 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.
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