Jefferies analyst Julien Dumoulin Smith has maintained their bullish stance on VST stock, giving a Buy rating yesterday.
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Julien Dumoulin Smith’s rating is based on several strategic and financial considerations. Vistra Energy is actively involved in bidding for a significant Eastern portfolio of natural gas plants, which could enhance its asset base and operational capacity. The company’s recent adjustments in its financial presentations suggest a strategic shift towards greater flexibility, potentially to accommodate further acquisitions, which could be beneficial for its growth trajectory.
Moreover, the nuclear production tax credits (PTC) under the Inflation Reduction Act provide a favorable financial backdrop for Vistra. These credits are seen as credit positive by rating agencies, enhancing Vistra’s leverage capabilities. Additionally, the PTC offers a hedging benefit, allowing Vistra to maintain a more open portfolio, which could lead to asymmetric positive outcomes. These factors collectively contribute to a positive outlook for Vistra, justifying the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $172.00 price target.
VST’s price has also changed slightly for the past six months – from $142.120 to $155.000, which is a 9.06% increase.