Vistra Energy (VST – Research Report), the Utilities sector company, was revisited by a Wall Street analyst on May 16. Analyst Carly Davenport from Goldman Sachs maintained a Hold rating on the stock and has a $134.00 price target.
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Carly Davenport’s rating is based on Vistra Energy’s recent acquisition announcement of 2.6 GW of natural gas assets from Lotus Infrastructure Partners. The purchase, valued at $1.9 billion, is expected to be accretive to adjusted free cash flow in the first year post-acquisition, reflecting a strategic move to meet growing power demand. Despite the potential benefits, the acquisition represents only a small portion of Vistra’s existing generation capacity, which may not significantly alter the company’s overall market position.
Additionally, the financing plan for the acquisition involves a combination of an existing term loan and cash on hand, which aligns with Vistra’s capital allocation strategy. The transaction is subject to regulatory approvals and is expected to close by late 2025 or early 2026. Given these factors, Carly Davenport has opted for a Hold rating, suggesting a cautious approach while acknowledging the potential for future growth and shareholder returns.
Davenport covers the Utilities sector, focusing on stocks such as Edison International, Vistra Energy, and American Electric Power. According to TipRanks, Davenport has an average return of 7.1% and a 64.29% success rate on recommended stocks.