Mizuho initiated coverage on Vistra Corp. with an "Outperform" rating, setting a price target of $169.00. The firm highlighted Vistra as one of the best-positioned merchant power platforms to capitalize on the significant increase in U.S. electricity demand, which is being driven by the buildout of AI and data centers.
The analysis noted Vistra's continued expansion, including the recent acquisition of Cogentrix, which added 5.5GW of generation facilities. Mizuho projects Vistra's free cash flow yield will expand from about 8% in 2025 to approximately 13% by 2028. The firm believes the current valuation represents a compelling entry point for investors.