BofA reinstated coverage of Vistra (VST) with a Neutral rating and $206 price target As the largest competitive residential retail electricity provider and power generator in the U.S., Vistra’s dominance in retail “provides a natural hedge to the generation business,” but it also limits upside, the analyst tells investors. While increasing power prices would lead to higher generation margins, they would also lead to compressed retail margins due to the higher cost of energy, the analyst explains. The firm believes “much of the upside has already been priced in” and while EBITDA will grow, growth is likely to be more limited at about 8%, the analyst added.
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