Morgan Stanley raised Vistra Corp's price target to $186 due to AI-driven power demand growth.

From Yahoo Finance: 2025-06-25 12:50:00

Vistra Corp. (NYSE:VST) is recognized as one of the 10 best AI stocks to buy by billionaire David Tepper. Morgan Stanley raised Vistra’s price target to $186 from $178 and maintained an “Overweight” rating on June 19, based on AI-driven power demand growth. Analyst David Arcaro shared this update.

Arcaro highlighted three reasons for the target increase, including the strong fundamental backdrop for the power sector due to rising demand from AI-driven data centers. Vistra’s strategic positioning with nuclear power plants and battery energy storage capacity were also key factors. Additionally, Vistra’s financial discipline and shareholder returns played a role in the upgrade.

Vistra Corp. (NYSE:VST) is an American integrated power company with five segments: Retail, Texas, East, West, and Asset Closure. It boasts a diverse portfolio of around 41,000 megawatts capacity from various energy sources like natural gas, nuclear, coal, solar, and battery storage assets.

While VST presents investment potential, other AI stocks may offer greater upside and lower risk. For those seeking an undervalued AI stock benefiting from Trump-era tariffs and onshoring trends, consider exploring the best short-term AI stock.

Read more: Morgan Stanley Lifts Vistra (VST) Target on AI-Driven Power Demand Growth