Transformation of the Utility Sector: The utility sector has shifted from a defensive investment to a dynamic growth opportunity, driven by the increasing demand for electricity from AI-powered data centers, with the S&P 500 Utilities Index outperforming the broader market in 2023.
Rising Electricity Demand: The U.S. Department of Energy projects that data centers will consume 6.7-12% of total U.S. electricity by 2028, leading to significant growth in utility investments and infrastructure upgrades to meet this demand.
Investment Opportunities in Utility ETFs: Investors are encouraged to consider utility-focused exchange-traded funds (ETFs) to diversify their exposure and mitigate risks associated with individual utility stocks, as these funds have shown strong year-to-date performance.
Macro Conditions Favoring Utilities: Anticipated Federal Reserve rate cuts could lower borrowing costs for utility companies, further supporting their growth and investment in infrastructure to accommodate the rising power demand from the AI sector.
Wall Street analysts forecast VST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VST is 240.09 USD with a low forecast of 217.00 USD and a high forecast of 287.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast VST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VST is 240.09 USD with a low forecast of 217.00 USD and a high forecast of 287.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 160.020
Low
217.00
Averages
240.09
High
287.00
Current: 160.020
Low
217.00
Averages
240.09
High
287.00
Morgan Stanley
Overweight
maintain
$228 -> $227
2026-01-21
New
Reason
Morgan Stanley
Price Target
$228 -> $227
AI Analysis
2026-01-21
New
maintain
Overweight
Reason
Morgan Stanley lowered the firm's price target on Vistra to $227 from $228 and keeps an Overweight rating on the shares. The firm is updating its Regulated & Diversified Utilities / IPPs in North America under its coverage, noting utilities underperformed the S&P's return in December, the analyst tells investors.
Wells Fargo
Shahriar Pourreza
Overweight
maintain
$238 -> $236
2026-01-20
New
Reason
Wells Fargo
Shahriar Pourreza
Price Target
$238 -> $236
2026-01-20
New
maintain
Overweight
Reason
Wells Fargo analyst Shahriar Pourreza lowered the firm's price target on Vistra to $236 from $238 and keeps an Overweight rating on the shares, as it fits within the absolute call on IPPs. Cogentrix deal and nuclear deal accelerated what the firm saw as longer term catalysts. Wells sees additional nuclear and fossil capacity eligible for contract.
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Goldman Sachs
Neutral -> Sell
downgrade
2026-01-08
Reason
Goldman Sachs
Price Target
2026-01-08
downgrade
Neutral -> Sell
Reason
Goldman Sachs downgraded Vestis to Sell from Neutral with a price target of $5.30, down from $6.30. The firm says the company's revenue growth turnaround will be constrained by customer service quality issues that are difficult to remediate. In addition, Vestis has limited pricing power in its business, with pricing up just 0%-1% year-over-year in recent quarters given service quality issues, the analyst tells investors in a research note.
BMO Capital
Outperform -> NULL
downgrade
$245 -> $230
2026-01-06
Reason
BMO Capital
Price Target
$245 -> $230
2026-01-06
downgrade
Outperform -> NULL
Reason
BMO Capital lowered the firm's price target on Vistra to $230 from $245 and keeps an Outperform rating on the shares. Vistra announced it executed agreements to acquire Cogentrix Energy for a net purchase price of about $4B, consisting of 10 natural gas generation facilities with roughly 5,500MW of capacity, the analyst tells investors in a research note.
About VST
Vistra Corp. is an integrated retail electricity and power generation company that provides essential resources to customers, businesses, and communities from California to Maine. It operates a reliable power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities while taking an innovative, customer-centric approach to its retail business. Its segments include Retail, Texas, East, West, and Asset Closure. The Retail segment is engaged in retail sales of electricity and natural gas to residential, commercial and industrial customers. The Texas and East segments are engaged in electricity generation, wholesale energy sales and purchases, commodity risk management activities, fuel procurement, and logistics management. The West segment represents results from the CAISO market, including its battery ESS projects at its Moss Landing power plant site. The Asset Closure segment is engaged in the decommissioning and reclamation of retired plants and mines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
