Vistra (VST) Gets Price Target Boost Amid Strong Energy Market Fundamentals

Vistra Corp. (NYSE:VST) is one of the 10 AI Stocks Getting Wall Street’s Attention. On June 17, UBS raised the firm’s price target on the stock to $207 from $160 and kept a “Buy” rating on the shares. The price target raise reflects a “strong fundamental backdrop” for the power sector, the analysts noted.

Other factors cited behind the rating affirmation include “more visible demand, lack of supply response, and bias higher in pricing.” It believes that the power sector is witnessing a “demand pull” backdrop, coupled with upward pressure on wholesale power prices and potential growth opportunities from future contracting for gas assets. Together, these factors support pushing a higher valuation.

An aerial view of the energy producing facility, highlighting its potential of providing utilities to the public.

Acknowledging the ongoing market debate about the remaining upside for Vistra, the firm asserted that even though there are some yet-to-be-announced deals that may be factored into the current stock price, the market is likely to sustain higher multiples for independent power producers.

Two factors, notably the improving stability and duration of cash flows through contracting opportunities, as well as slowly increasing demand and limited near-term supply response options in the power sector, have resulted in the expectation for a higher valuation.

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company.

While we acknowledge the potential of VST  as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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