20 AI News and Analyst Ratings You Should Not Miss

7. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92  

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The firm recently announced that it would acquire an additional 15% equity interest in Vistra Vision LLC, a subsidiary of the power firm, in a deal worth $3.2 billion. The interest would be purchased from Nuveen Asset Management and Avenue Capital Management. Vistra plans to clear the purchase through five transactions spread over the space of two years. The transaction, which is not subject to any regulatory approvals, per reports, is expected to close by the end of this year. Vistra Vision owns nuclear generation facilities with a capacity of nearly 6.4 gigawatts, as well the renewables and energy storage business and retail business of Vistra.

Vistra Corp. (NYSE:VST) has been strengthening its nuclear portfolio to capitalize on AI-driven electricity demand. Hyperscalers are turning to nuclear power operators for a 24/7 source of clean and reliable electricity, and nuclear has emerged as a strong option.

BMO Capital recently raised the price target on Vistra Corp. (NYSE:VST) stock to $125 from $120 and kept an Outperform rating on the shares. In a research note, analysts at the advisory remarked that there was positivity on the company’s announcement that it was acquiring the 15% minority interest in its zero-carbon subsidiary Vistra Vision based on the attractive implied valuation about 7.9-times on enterprise value to expected EBITDA basis for a premium zero-carbon subsidiary and viewed the transaction as being consistent with the management’s disciplined asset allocation strategy.