Analyst David Arcaro of Morgan Stanley maintained a Buy rating on Vistra Energy (VST – Research Report), retaining the price target of $172.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight Vistra Energy’s strong financial performance and promising future outlook. The company’s first-quarter EBITDA significantly exceeded expectations, with a 15% increase over consensus estimates, driven by robust performance in both the retail and generation segments. This strong financial showing is complemented by Vistra’s reiterated guidance for 2025 EBITDA and free cash flow, suggesting a solid financial foundation moving forward.
Furthermore, Vistra’s strategic hedging and favorable operational conditions are expected to enhance its EBITDA potential in 2026 and beyond, with projections possibly reaching up to $7 billion. The company also has a positive outlook on free cash flow, which could lead to substantial share buybacks. Additionally, potential policy developments in Texas could pave the way for strategic deals, particularly involving the Comanche Peak nuclear plant, further solidifying Vistra’s growth prospects. These factors collectively underpin Arcaro’s confidence in Vistra’s stock, justifying the Buy rating.
In another report released on May 5, Bank of America Securities also maintained a Buy rating on the stock with a $154.00 price target.