Vistra Corp. (NYSE:VST) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.
Vistra Corp. (NYSE:VST) is the largest competitive power generator in the US. The company boasts a capacity of approximately 41,000 MW, powered by a diverse portfolio that includes natural gas, coal, nuclear, solar, and battery energy storage facilities.
On December 16, Morgan Stanley analyst David Arcaro raised the firm’s price target on Vistra Corp. (NYSE:VST) from $225 to $228, while keeping an ‘Overweight’ rating on the shares. According to the analyst, the performance of the utility sector will be heavily driven by data centers and growth upside next year, given the rapidly increasing demand from the ongoing AI race between hyperscalers. The analyst favored utilities with exposure to data center demand growth, and cautioned against companies facing heavy affordability scrutiny, given that 2026 is an election year.
In another positive development for the stock, it was revealed on December 2 that S&P has upgraded Vistra Corp. (NYSE:VST) to investment grade. VST’s long-term rating was raised from BB+ to BBB-, driven primarily by the utility’s deal to sell power from a nuclear plant, its purchase of natural gas assets, and strong hedging of future production.
That said, on December 16, JPMorgan analyst Jeremy Tonet trimmed the firm’s price target on Vistra Corp. (NYSE:VST) from $249 to $233, but kept an ‘Overweight’ rating on the shares. The revision comes as the firm updated the company’s model following the Q3 report, in which Vistra fell below estimates for both earnings and revenue.
While we acknowledge the potential of VST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
