Morgan Stanley Lowers Vistra (VST) Target While Staying Bullish on Long-Term Outlook

Core Viewpoint - Morgan Stanley has lowered its price target for Vistra Corp. (VST) to $215 from $227 while maintaining an Overweight rating, indicating a positive long-term outlook despite recent underperformance compared to the S&P 500 [1] Group 1: Analyst Ratings and Price Targets - Morgan Stanley analyst David Arcaro updated the price target for Vistra to $215, reflecting a broader adjustment across utilities in North America [1] - Jefferies upgraded Vistra to a Buy rating and raised its 12-month price target to $203 from $191, suggesting a potential upside of about 30% [2] - Following Jefferies' upgrade, Vistra shares experienced a rise of up to 5.5% in early trading the next day [2] Group 2: Stock Performance and Market Sentiment - Vistra's stock has faced significant pressure, declining approximately 25% since the announcement of a 1,200 megawatt power supply agreement from its Comanche Peak nuclear plant [3] - Despite the decline, Jefferies views the current stock price as an attractive entry point due to increasing demand for reliable nuclear power alongside data center expansion [3] - Analyst Julien Dumoulin-Smith believes that current valuations do not fully capture the potential benefits from future data center contracts, indicating room for upside surprises [4] Group 3: Company Overview - Vistra Corp. is a Texas-based integrated retail electricity and power generation company, founded in 1882, providing electricity and natural gas solutions to residential, commercial, and industrial customers [4]