Vistra Energy Corp. (NYSE: VST) saw its stock soar 5.38% in pre-market trading on Sunday, following a notable upgrade from Bank of America. The surge comes as analysts express optimism about the company's positioning in the face of increasing power demand, particularly driven by the artificial intelligence (AI) boom.
Bank of America analyst Ross Fowler upgraded Vistra from Neutral to Buy, setting a price target of $152. The upgrade was based on Vistra's strong quarterly results and its strategic position to benefit from tightening markets in PJM and ERCOT. Fowler highlighted the company's baseload generation and competitive retail business as key strengths, noting their potential to capitalize on increasing demand and retail growth, regardless of specific data center deals.
The power company's outlook is further bolstered by the growing energy needs of AI and data centers. As the AI industry continues to expand rapidly, the demand for reliable and substantial power sources is expected to surge, potentially providing a significant tailwind for integrated electricity providers like Vistra. The company has maintained its confidence in achieving adjusted EBITDA exceeding $6 billion for 2026, signaling strong growth prospects.
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