Vistra Energy Corp. (NYSE: VST) saw its stock surge 5.38% in Sunday's trading session, reflecting growing investor optimism following a recent upgrade by Bank of America and the company's strong position in both the energy and AI markets.
The rally comes on the heels of Bank of America's decision in early March to upgrade Vistra from Neutral to Buy, setting a price target of $152. Analyst Ross Fowler cited Vistra's well-positioned base business of baseload generation and competitive retail as key factors, noting the company stands to benefit from tightening markets in PJM and ERCOT, increasing demand, and retail growth. This positive outlook is further solidified by Vistra's maintained confidence in achieving adjusted EBITDA exceeding $6 billion for 2026.
Adding to the bullish sentiment, Vistra has been ranked 7th on a list of best AI stocks to buy according to billionaires, highlighting its potential in the rapidly growing artificial intelligence sector. The combination of strong fundamentals in its core energy business and its emerging position in AI appears to be driving increased interest from both institutional and retail investors. However, CEO Burke has cautioned that legislative and regulatory uncertainties in Texas and PJM markets could impact future investments and timelines, particularly for new-generation projects.
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