Latest news with #VST
CNBC
5 days ago
- Business
- CNBC
This stock literally powering AI is setting up for a run to record levels, according to the charts
For this week's column, I was planning to do a simple analysis of the Nasdaq-100 showing a holding pattern that's been in place since May 13. Upon the completion of this consolidation, we should resolve to the upside testing the all-time highs — despite all the lingering macro headwinds. But when I learned about Meta Platforms signing a nuclear power deal with Constellation Energy , I decided to focus on the companies literally powering this revolution in artificial intelligence. I don't hold Constellation Energy, but I do own Oklo , GE Vernova , and Vistra in our Tactical Alpha Growth (T.A.G.) portfolio at Inside Edge Capital . As the AI buildout powers ahead, this will be one of the key drivers to break QQQ from the three-week consolidation setting up all-time highs. Today we're going to focus on Vistra Corp (VST), a stock that I also hold in our "fast money" account Active Opps with a 3.6% weighting. Based on today's news, many of the power generation and equipment suppliers are trading higher along with the semiconductors. I will increase my position size in VST to approximately 5% of my holdings in Active Opps based on the tactics I outline below. But first, let's talk about the company. Vistra is an integrated power generation and retail electricity company that has positioned itself in a pivotal role to support the AI technology buildout by filling the significant energy demands of AI-driven data centers. In 2024, Vistra acquired Energy Harbor for $3.4 billion — adding four nuclear power plants to its portfolio. Vistra has also made investments in natural gas assets as well as solar facilities, which allowed them to enter into power purchase agreements (PPA's) with Amazon and Microsoft. VST has grown revenue consistently since 2021 and GAAP EPS aggressively, until this year where analysts see a 11.79% contraction. Non-GAAP EPS is showing growth rates since 2022 of 378%, 88%, 54% and 43% according to S & P Global Capital IQ. The weekly chart shows nearby resistance in the $172-$177 zone. I would feel better increasing my position size if we can get a daily close above $180 setting up a test of all-time highs just below $200. Turning to the daily chart, we see a gap up today into our resistance zone following the Constellation-Meta news. If we can get a move into $180 this week, I will be looking to add to my position and consider the pivot point that is now support at $165 as my risk containment level. We offer active portfolio management and regular subscriber updates like the idea presented above. -Todd Gordon, Founder of Inside Edge Capital, LLC DISCLOSURES: Gordon owns VST personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
29-05-2025
- Business
- Yahoo
VST Still a Top Pick Despite Price Cut, Says Evercore, Citing Strong EBITDA Path
Evercore ISI analyst Durgesh Chopra recently lowered the price target on Vistra Corp. (NYSE:VST) to $192 from $202 and kept an Outperform rating on the shares. Vistra operates as an integrated retail electricity and power generation company. In an investor note, the analyst noted that all of the major Independent Power Producers had reported their quarterly results over the last two weeks and for the most part IPPs faired relatively well during Q1 with strong adjusted EBITDA performance. The analyst expected the positive momentum to continue across the IPP coverage throughout the year. The advisory was slightly reducing price targets for Talen Energy and Vistra, primarily due to peer multiple contraction, the analyst noted. Solar panel workers installing a new farm for clean energy generation. The firm recently reaffirmed its 2025 adjusted EBITDA guidance range of $5.5 billion to $6.1 billion and its free cash flow before growth guidance of $3 billion to $3.6 billion. For 2026, the company remains confident in an adjusted EBITDA midpoint opportunity approaching $6 billion to $7 billion. Vistra sees durable demand growth across industries, particularly driven by AI and data center expansions. While legislative and regulatory clarity is awaited in Texas and PJM markets, the company expects these developments to unlock further opportunities. While we acknowledge the potential of VST, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
VST Still a Top Pick Despite Price Cut, Says Evercore, Citing Strong EBITDA Path
Evercore ISI analyst Durgesh Chopra recently lowered the price target on Vistra Corp. (NYSE:VST) to $192 from $202 and kept an Outperform rating on the shares. Vistra operates as an integrated retail electricity and power generation company. In an investor note, the analyst noted that all of the major Independent Power Producers had reported their quarterly results over the last two weeks and for the most part IPPs faired relatively well during Q1 with strong adjusted EBITDA performance. The analyst expected the positive momentum to continue across the IPP coverage throughout the year. The advisory was slightly reducing price targets for Talen Energy and Vistra, primarily due to peer multiple contraction, the analyst noted. Solar panel workers installing a new farm for clean energy generation. The firm recently reaffirmed its 2025 adjusted EBITDA guidance range of $5.5 billion to $6.1 billion and its free cash flow before growth guidance of $3 billion to $3.6 billion. For 2026, the company remains confident in an adjusted EBITDA midpoint opportunity approaching $6 billion to $7 billion. Vistra sees durable demand growth across industries, particularly driven by AI and data center expansions. While legislative and regulatory clarity is awaited in Texas and PJM markets, the company expects these developments to unlock further opportunities. While we acknowledge the potential of VST, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
19-05-2025
- Business
- Yahoo
Jefferies' Bullish Rating on Vistra (VST) Bolstered by Multiple Growth Drivers
On May 16, Julien Dumoulin Smith from Jefferies commended Vistra Corp.'s (NYSE:VST) recent strategic decisions, underpinning his Buy rating on the shares. The analyst believes the company's efforts to purchase the eastern portfolio of natural gas plants could be substantially positive because these assets would significantly raise its operational capacity. He also believes that the company's recent manoeuvre to increase its financial flexibility and strengthen its balance sheet appears to hint towards its preparedness for further acquisitions and is thus positive for future growth. The analyst added that the new nuclear production tax credit (PTC) under the Inflation Reduction Act (IRA) provides another advantage, as they are positive for credit ratings and increases the company's leverage capacity. Aerial view of a natural gas fired power plant glowing against the night sky. To put things in perspective, on May 15, Vistra Corp. (NYSE:VST) announced its agreement with Lotus Infrastructure Partners to acquire seven natural gas generation facilities totalling around 2,600 MW of capacity. Vistra expects to pay around $1.9 billion for the assets, equating to approximately $743/kW. The transaction is expected to close by late 2025 or early 2026. The company is an integrated retail electricity and power generation company. It operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities. While we acknowledge the potential of VST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
Vistra Corp. (VST) Bets on AI Power Demand With $1.9 Billion Natural Gas Deal
Vistra Corp. (NYSE:VST) has recently agreed to acquire seven natural gas power plants for $1.9 billion from Lotus Infrastructure Partners, aiming to meet the growing energy needs driven by artificial intelligence. VST is a Texas-based electricity and power generation company that offers essential power resources to its customers. The deal will add 2,600 megawatts of capacity across five states—mainly in the Northeast—boosting Vistra's already extensive power generation portfolio from California to Maine. This capacity is roughly equal to 2.5 nuclear reactors. According to Glenrock Associates analyst Paul Patterson, the move reflects a broader trend among independent power producers capitalizing on the surge in data center demand. Investors have been responding positively to such acquisitions, marking a shift from years of industry struggles and bankruptcies. Patterson noted that while Vistra's move isn't surprising, more similar deals are likely on the horizon. In addition to Vistra Corp. (NYSE:VST)'s growth strategy, the company is also a strong dividend payer. On May 2, it announced a 1% hike in its quarterly dividend to $0.225 per share. Through this increase, the company stretched its dividend growth streak to 13 years. In the past 12 months, the stock has surged by over 71%, outperforming the broader market. While we acknowledge the potential of VST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
