Core Insights - CPP Investments plans to acquire a 50% stake in Inkia Energy for a total enterprise value of $3.4 billion (11.41 billion new sol) alongside I Squared Capital [1] - Inkia Energy operates a generation portfolio of 2.6GW through its subsidiaries Kallpa Generación and Orazul Energy Peru [1][4] Group 1: Investment Details - The remaining stake in Inkia will be held by a continuation vehicle led by I Squared Capital [1] - The transaction is contingent on satisfying closing conditions and obtaining necessary government approvals [4] Group 2: Strategic Importance - Inkia Energy is crucial for meeting Peru's energy needs, especially for the mining sector [2] - CPP Investments and I Squared aim to develop Inkia's pipeline of over 4GW of solar, wind, gas, and battery storage projects for future expansion [2] Group 3: Governance and Growth - I Squared Capital has been involved with Inkia since 2017, helping it grow into a diversified energy platform [3] - Inkia's operations in Peru expanded from 1.6GW to 2.6GW during I Squared's involvement [4] - I Squared will maintain an active role in Inkia's governance and strategic decision-making [4] Group 4: Environmental Initiatives - In October 2024, Inkia received environmental approval to expand its Sunny solar power plant from 228 megawatts-peak (MWp) to 338MWp, part of its plan to establish a solar hub in Peru [4]

Core Viewpoint - Vistra's stock has declined approximately 24% from its peak, amid broader market concerns related to tariffs and potential corrections [2][3] Company Performance - Vistra is positioned as a significant beneficiary in the AI race, particularly with its involvement in power projects that support AI data centers [3][4] - The company is actively expanding its nuclear and gas power projects to meet the growing energy demands associated with AI [4][6] Valuation Metrics - Vistra's shares are currently trading at a trailing price-to-earnings (P/E) ratio of nearly 60, which may appear expensive [5] - However, the forward P/E ratio is significantly lower at 17.4, suggesting that the stock may be undervalued in the context of future earnings growth [6][8] Analyst Sentiment - Analysts remain bullish on Vistra, with some viewing the stock as a good investment at around $165, and Scotiabank setting a price target of $293, indicating a potential upside of 78% [7][8] - The ongoing data center boom and nuclear power renaissance support the argument that Vistra's valuation may not be as high as perceived [7]