Vistra (VST) Signs 20-Year Nuclear Power Agreement with Meta, Strong Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Nuclear Power Agreement: Vistra's 20-year power purchase agreement with Meta, covering three nuclear plants, signifies a strong commitment from tech giants to nuclear energy, expected to provide Vistra with stable revenue streams and boost market confidence.
- Surging Electricity Demand: By 2028, it's projected that data centers will account for 12% of total U.S. electricity consumption, tripling from 2023, and Vistra's dispatchable generation capabilities position it well to meet this demand, enhancing its competitive edge.
- Optimistic Financial Outlook: With a forward P/E ratio near 18 and an enterprise value-to-EBITDA ratio of 15, Vistra appears fairly priced currently, and strong growth is anticipated in the coming years, making it attractive to investors.
- Consistent Dividend Returns: Vistra has rewarded shareholders with quarterly dividends since 2019, and while the yield is currently below 1%, this stable dividend policy enhances investor confidence and attractiveness of holding the stock.
Analyst Views on VST
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 239.71 USD with a low forecast of 217.00 USD and a high forecast of 256.00 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.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 180.180
Low
217.00
Averages
239.71
High
256.00
Current: 180.180
Low
217.00
Averages
239.71
High
256.00
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.
