Investing.com -- Bank of America upgraded Vistra to "Buy" from "Neutral" given an attractive valuation after the stock’s recent underperformance.
The firm said the company’s core business remains well-positioned to benefit from tightening power markets and growing demand, even without new data center deals.
“We think a more disciplined approach reducing capital spending by $1.3 billion, focusing on higher-return investments and cutting $300M in costs makes” the company’s growth target more achievable.
BofA also upgraded AES (NYSE:AES) Corp to "Neutral" from "Underperform," raising its price objective to $13 from $11.
The firm said AES's revised strategy, which includes capital spending cuts and a more achievable renewables growth target, improves execution visibility. However, it noted that risks remain regarding asset sales and funding constraints.
Vistra’s price objective was lowered to $152 from $164, implying a 23% total shareholder return potential.
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