Bank of America Securities analyst Ross Fowler reiterated a Buy rating on Vistra Energy yesterday and set a price target of $214.00.
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Ross Fowler’s rating is based on a combination of factors that highlight Vistra Energy’s strategic positioning and potential for growth. The decision to increase the price objective to $214 from $193 is influenced by the adjustment of EBITDA multiples and a revised valuation methodology. This includes applying a 50% premium on gas, reflecting a more favorable market environment driven by recent administrative initiatives and concerns about resource adequacy.
Despite some challenges, such as lower than expected EBITDA and operational headwinds in Texas, the East segment has benefited from higher realized prices. Additionally, there is anticipation around potential announcements related to datacenter deals, particularly concerning the Comanche Peak and Beaver Valley plants. These factors, along with discussions on power curves and demand growth expectations, contribute to the Buy rating, indicating confidence in Vistra Energy’s future performance.
In another report released on July 25, Morgan Stanley also maintained a Buy rating on the stock with a $200.00 price target.
VST’s price has also changed moderately for the past six months – from $149.640 to $195.880, which is a 30.90% increase.