Vistra price target raised to $42 from $40 at BMO Capital

BMO Capital raised the firm’s price target on Vistra to $42 from $40 and keeps an Outperform rating on the shares. The firm hosted the company’s senior management last week and left with “increased conviction” in Vistra’s favorable positioning in what BMO believes to be an evolving positive secular outlook for integrated power, the analyst tells investors in a research note. BMO adds that it sees substantial free cash flow generation at Vistra’s generation and retail operations in 2023 and beyond, along with a growing EBITDA contribution from its self-financing Vistra Zero carbon-free subsidiary.