Vistra Energy (VST) Buy Rating Affirmed on Strong Financials and Promising Future Growth

BMO Capital analyst James Thalacker has reiterated their bullish stance on VST stock, giving a Buy rating yesterday.

James Thalacker has given his Buy rating due to a combination of factors indicating strong financial performance and future potential for Vistra Energy (VST). His confidence is supported by the company’s impressive first quarter results, which surpassed expectations by 20%. This positive outcome led to an upward revision of the financial guidance for the coming years, showcasing a robust earnings before interest, taxes, depreciation, and amortization (EBITDA) outlook that consistently exceeds both consensus and BMO Capital’s estimates. Notably, Vistra Energy’s forward guidance into 2026 suggests substantial growth with a conservative approach that still provides room for additional upside as the company progresses with its hedging strategy in a favorable contango market.

Furthermore, Thalacker’s analysis takes into account the significant free cash flow (FCF) generation potential at Vistra Energy, with an emphasis on its carbon-free subsidiary, Vistra Zero. The company’s strategic position in a power market that is experiencing notable demand growth sets it apart from competitors. This, along with the potential for additional benefits from nuclear production tax credits (PTCs), which are yet to be factored into the company’s guidance, presents a compelling case for a Buy rating. Thalacker’s optimism is also reflected in the increased price target for VST, which factors in the updated EBITDA projections and the expected cash flows.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a $110.00 price target.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VST in relation to earlier this year.

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Vistra Energy (VST) Company Description:

Vistra Energy Corp. operates as an energy company, which engages in the provision of electricity and power generation. Its portfolio of businesses includes TXU Energy and Luminant. It operates through the following segments: Retail, ERCOT, PJM, NY/NE, MISO, Asset Closure, and Corporate and Other. The Retail segment sells electricity and related services to residential, commercial and industrial customers. The ERCOT, PJM, NY/NE, and MISO segments relate to electricity generation, wholesale energy sales and purchases, commodity risk management activities, and fuel production and logistics management. The Asset Closure segment involves in the decommissioning and reclamation of retired plants and mines. The Corporate and Other represents the remaining non-segment operations. The company was founded in 1882 and is headquartered in Irving, TX.