Vistra Corp. (NYSE:VST) is one of the AI Stocks Gaining Attention on Wall Street. On January 6, KeyBanc analyst Sophie Karp reiterated an Overweight rating on the stock with a $217.00 price target.
The rating affirmation follows Vistra’s recent announcement that it will buy Cogentrix Energy from Quantum Capital Group in a deal valued at estimated $4 billion.
The company has entered a definitive agreement to acquire Cogentrix’s portfolio of 10 natural gas plants totaling 5,496 MW across PJM, ISO-New England, and ERCOT markets. The deal values the portfolio at an estimated $730/kW and about 7.25x 2027E adjusted EBITDA.
Keybanc describes this as attractive compared to Vistra’s pre-deal generation portfolio valued at an estimated $1,700/kW. As per the firm’s report, Vistra forecasts the deal to deliver mid-single-digit accretion in 2027 and high-single-digit accretion on average over 2027-2029.
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.
