Morgan Stanley Cuts Price Target on Vistra (VST). Here is Why

Vistra Corp. (NYSE:VST) is included among the 12 Best Utility Stocks to Buy Now According to Hedge Funds.

Morgan Stanley Cuts Price Target on Vistra (VST). Here is Why

Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.

On June 24, Morgan Stanley analyst David Arcaro trimmed the firm’s price objective on Vistra Corp. (NYSE:VST) from $212 to $210, but reaffirmed an ‘Overweight’ rating on the shares. The lowered target still implies an upside of more than 28% from the current price level.

In its latest sector review, Morgan Stanley revised its price targets across North American Regulated & Diversified Utilities / IPPs for May. The analyst firm pointed out that the overall utilities sector fell by 5.5% last month, a sharp contrast to the broader market, as the S&P gained approximately 5.1% over the same period.

Meanwhile, Bernstein analyst Sunaina Ocalan initiated coverage of Vistra Corp. (NYSE:VST) on June 18 with an ‘Outperform’ rating and $187 price target. The analyst believes that Vistra’s diverse generation portfolio positions it to capitalize on the soaring power demand, creating a “double-barreled earnings event” (read more details here).

While we acknowledge the risk and potential of VST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VST and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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