Key Takeaways

Vistra ( VST ) stock was one of the biggest winners of 2024, and has already started 2025 on a positive note, rising nearly 19% in the first three trading sessions of the year.

The energy company's stock more than tripled in value last year , setting a number of record highs along the way. Vistra was one of several utilities stocks that surged in 2024 as analysts highlighted how massive energy demand from AI and data centers could turbocharge growth in the historically sleepy sector.

Entering the new year, all five analysts tracked by Visible Alpha rate Vistra stock a "buy," but the average price target of $147.20 suggests some analysts expect a pull-back from its current price of about $164. Of the 17 analysts tracked by FactSet Research, 15 have a "buy" or "overweight" rating, with an average price target over $170.

Vistra Among Morgan Stanley's 'High Conviction' Buy Ratings

In a note last month, Morgan Stanley analysts named Vistra and Constellation Energy ( CEG ) two of their "high conviction overweight" ratings entering the new year. They noted that Vistra has potential for new data center deals with its Comanche Peak nuclear plant in Texas, along with "strategic options" for its gas power fleet.

The analysts noted that regulatory uncertainty has recently clouded the outlook for nuclear power and data centers. In November, federal regulators blocked a deal between Amazon ( AMZN ) and Talen Energy ( TLN ). Morgan Stanley analysts expect regulatory clarity later this year and said Vistra would likely be the first power provider they track to sign a data center deal in 2025.

In November, Jefferies analysts lifted their price target to $167 from $143, and said they expected a data center deal by the end of 2024 or in the first quarter of this year.

Vistra shares rose 0.9% Monday, bringing their return in the first three sessions of the year to nearly 19%.

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