Melius initiates Vistra Energy stock coverage with Buy rating

Published 20/08/2025, 12:40
Melius initiates Vistra Energy stock coverage with Buy rating

Investing.com - Melius Research initiated coverage on Vistra Energy (NYSE:VST) with a Buy rating and a price target of $194.00 on Wednesday. The stock has demonstrated remarkable performance, delivering a 144% return over the past year and maintaining a GREAT financial health score according to InvestingPro data.

The research firm identified Vistra as a major player in power markets, noting the company’s 41 GW of generation capacity across nuclear, natural gas, coal, and solar sources, along with battery storage capabilities.

Melius highlighted that Vistra owns the Moss Landing energy storage facility in California, which ranks among the world’s largest battery storage systems.

The firm pointed to Vistra’s significant investments in solar and battery storage, along with its highly acquisitive business strategy.

Melius also noted Vistra’s most recent transaction, the announced acquisition of seven natural gas plants from Lotus Infrastructure Partners.

In other recent news, Vistra Energy reported second-quarter 2025 earnings that fell short of expectations, with earnings per share at $0.92, significantly below the forecasted $1.61. The company’s revenue also missed projections, coming in at $4.25 billion compared to the anticipated $5.12 billion. Despite these earnings challenges, several analyst firms have adjusted their outlooks on Vistra Energy. BMO Capital raised its price target to $229, citing the company’s EBITDA of $1,349 million, which exceeded consensus estimates by 13%. BofA Securities increased its price target to $220, reflecting updated forecasts based on power prices and capacity pricing. CFRA also raised its target to $230, attributing this to strong growth expectations and a positive outlook for nuclear operators. Additionally, Vistra announced it will dual list its common stock on NYSE Texas, maintaining its primary listing on the New York Stock Exchange. These developments highlight a mix of financial performance and strategic initiatives for Vistra Energy.

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