Daiwa starts Vistra with Neutral on valuation caution

Daiwa initiated coverage of Vistra (VST) with a Neutral rating and $120 price target The firm believes Vistra will be a key beneficiary of the tailwinds of U.S. power revival via leveraging its “dominant market position and premium market exposure.” Daiwa likes the company’s long-term outlook, but is cautious on the stock’s current valuation. The shares have gained 300% since the start of 2024, alongside profit-taking pressure on artificial intelligence-related stocks, contends Daiwa. The firm sees limited room for a further rerating in the next 12 months, saying Vistra is a “great” artificial intelligence story, but that this is already in the share price.