BMO Capital analyst James Thalacker reiterated a Buy rating on Vistra Energy (VST – Research Report) yesterday and set a price target of $191.00.
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James Thalacker has given his Buy rating due to a combination of factors, primarily driven by Vistra Energy’s strategic acquisition of a 2,557MW natural gas generation portfolio from Lotus Infrastructure Partners. This acquisition is viewed positively as it is expected to be accretive to the company’s free cash flow per share in the first full year, enhancing shareholder value through share repurchases and dividends. The acquisition expands Vistra’s natural gas generation footprint across key regions and is funded through a balanced approach of cash and assumed debt, maintaining the company’s leverage targets.
Additionally, Vistra’s robust free cash flow generation and growing EBITDA contributions from its carbon-free subsidiary, Vistra Zero, further support the Buy rating. The company’s strong presence in power markets with significant demand growth sets it apart from competitors, and the anticipated financial benefits from the acquisition align with Vistra’s strategic goals. These factors collectively underpin Thalacker’s positive outlook on Vistra Energy’s stock.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $172.00 price target.
VST’s price has also changed slightly for the past six months – from $142.150 to $152.060, which is a 6.97% increase.
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