Vistra Energy, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst David Arcaro from Morgan Stanley reiterated a Buy rating on the stock and has a $223.00 price target.
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David Arcaro has given his Buy rating due to a combination of factors surrounding Vistra Energy’s recent power contract at its Comanche Peak nuclear plant. The contract is expected to significantly boost the company’s annual free cash flow by $326-408 million, representing an 8-10% increase relative to Vistra’s 2026 financial guidance. This anticipated financial uplift is a key driver of the positive outlook on the stock.
Additionally, the contract’s 20-year length, with an option to extend another 20 years, aligns favorably with investor expectations, providing long-term revenue visibility. While the contract covers half of the plant’s capacity, there remains potential for expansion, which could further enhance Vistra’s financial performance. Despite some uncertainties, such as the identity of the counterparty and the possibility of additional on-site generation, the overall deal is seen as a strategic move that strengthens Vistra’s market position.
In another report released on September 23, J.P. Morgan also reiterated a Buy rating on the stock with a $248.00 price target.