Vistra down almost 6%, underperforming weak utilties sector

Vistra

28/10/2025 16:04

** Shares in power utility Vistra VST.N down 5.6%, on track for biggest one-day drop since Oct 10 with a mixed bag of analyst notes; leading declines in S&P 500 utility sector .SPLRCU, which is down 1.5%

** It was underperforming the power sector with Constellation Energy CEG.O down ~2%, Nextera Energy NEE.N down 2.6% and NRG Energy NRG.N off 0.7%

** In its Q3 preview Jefferies cut PT for the stock to $228 from $230 saying "despite the pull-back in the stock, we wait for better risk/reward." The broker had downgraded the stock to hold last month

** VST stock last traded at $185.37 vs median PT of $232, which is up from $223.25

** But, in contrast to Jefferies, Wells Fargo initiated coverage of VST with an overweight rating and a $238 price target with estimate for EPS growth of 12% for 2025-2029. However, Wells analyst Shahriar Pourreza writes that VST has "slightly longer dated catalyst path" than its best idea stock CEG

** In its Q3 preview note Morgan Stanley analyst David Arcaro wrote that he sees only "a few meaningful financial guidance updates" from VST in the quarter but expects "the conversation to center  around data center contracting progress and potential regulatory update."

** Even with Tuesday's decline, VST shares still up ~37% YTD vs ~19% gain for utilities sector

(Reporting by Sinead Carew)

((sinead.carew@thomsonreuters.com))