Morgan Stanley is Bullish on Vistra Corp (VST) Here’s Why

Core Viewpoint - Morgan Stanley has a bullish outlook on Vistra Corp. (NYSE:VST), projecting a price target of $215, indicating it is considered a cheap stock with high return potential for 2026 [1]. Group 1: Demand and Supply Dynamics - The demand for computing power is anticipated to continue exceeding supply, despite rising power costs and regulatory challenges [2]. - Advancements in AI, particularly large language models, are accelerating non-linearly, contributing to increased economic value from adoption [2]. Group 2: Industry Trends - Bitcoin miners are shifting focus towards AI, and neocloud companies are making significant prepayments for capital expenditures to establish high-performance computing data centers [3]. - Companies like Vistra Corp. (NYSE:VST), GE Vernova (NYSE:GEV), and Bloom Energy (NYSE:BE) are expected to benefit from the growth of AI infrastructure [3]. Group 3: Company Overview - Vistra Corp. operates a power generation portfolio of 44,000 megawatts, utilizing various energy sources including nuclear, coal, solar, and gas [4].