Vistra buying ‘premium assets at a discount,’ says Morgan Stanley

After Vistra announced a deal to acquire the 15% minority interest in its zero-carbon subsidiary Vistra Vision from Nuveen Asset Management and Avenue Capital Management for a purchase price of $3.248B in cash, Morgan Stanley said the company is increasing its nuclear exposure at “a very attractive multiple” and “buying premium assets at a discount.” There is further upside optionality from data center contracts with the nuclear assets along with higher market power and capacity prices, while the deal also simplifies the business and “doesn’t strain the balance sheet,” adds the analyst, who has an Overweight rating and $110 price target on Vistra shares.