Vistra Energy (VST – Research Report), the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Julien Dumoulin Smith from Jefferies reiterated a Buy rating on the stock and has a $145.00 price target.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that highlight Vistra Energy’s potential for growth and value. Despite a recent downturn in power prices, the company has shown resilience, with its stock recovering from a significant slump earlier in the year. The decline in Vistra’s stock price from its all-time high presents an attractive entry point for investors, especially as the current valuation does not fully account for potential data center deals.
Furthermore, Vistra’s strong free cash flow generation and hedging strategies provide a solid foundation for future financial performance. The company is expected to generate over $7 billion in extra cash through 2027, allowing for continued share buybacks and growth investments. Additionally, Vistra’s valuation remains favorable compared to peers, offering a compelling risk/reward profile. The possibility of leveraging its Comanche Peak nuclear site for data center deals, pending regulatory clarity, adds further upside potential to the stock.
Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Ormat Techno, and Sempra Energy. According to TipRanks, Dumoulin Smith has an average return of 2.3% and a 53.09% success rate on recommended stocks.
In another report released on April 23, Morgan Stanley also maintained a Buy rating on the stock with a $172.00 price target.