Daiwa upgrades Vistra, sees Talen underperformance reversing

Daiwa analyst Dennis Ip upgraded Vistra (VST) to Buy from Hold with a price target of $250, up from $200. The firm cites “record” PJM capacity market prices for the 2026-2027 delivery year and increased confidence in a hyperscale nuclear power purchase agreements at the company’s Comanche Peak plant for the upgrade. In addition, Vistra’s share price has lagged peer Talen Energy’s (TLN) significantly, underperforming the stock by 32% quarter-to-date, the analyst tells investors in a research note. Daiwa says the valuation gap has been driven largely by Talen’s more frequent PPA announcements and its higher PJM market exposure, but it believes this dynamic is set to reverse.