Goldman Sachs Starts Vistra Energy (VST) at Neutral

Goldman Sachs analyst Carly Davenport initiates coverage on Vistra Energy (NYSE: VST) with a Neutral rating and a price target of $134.00.

The analyst comments: "Although VST boasts a slightly higher quality asset base in our view, given its 6.5 GWs of nuclear capacity, we see less upside at current valuation levels and greater headline risk around behind the meter/colocation deals. Our numbers imply ~8x EV/EBITDA multiple on VST's Q5-Q8 estimates, which is above the historical average closer to 7x. Given exposure to potential behind the meter deals, we believe VST is more exposed to potential delays or headline risk related to uncertainty around colocation. We see value in VST's business, especially in the long run as it capitalizes on its nuclear capacity in potential data center deals, but believe the market has priced some of this into valuation which now sits above historical levels."

For an analyst ratings summary and ratings history on Vistra Energy click here. For more ratings news on Vistra Energy click here.

Shares of Vistra Energy closed at $108.21 yesterday.

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