BofA Maintains a Buy Rating on Vista Energy (VIST) With a $75 PT

Vista Energy S.A.B. de C.V. (NYSE:VIST) is one of the most oversold energy stocks to buy right now. On July 10, Bank of America Securities analyst Leonardo Marcondes reiterated a Buy rating on Vista Energy S.A.B. de C.V. (NYSE:VIST) and set a price target of $75.00.

The analyst based the rating on Vista Energy S.A.B. de C.V.’s (NYSE:VIST) strategic acquisitions and solid production growth. He stated that the company’s recent consolidation of PEPASA and the increased stake in LACh are significant factors behind an increase in production levels, with a notable growth in both natural gas and oil outputs.

Marcondes reasoned that the expansion aligns with Vista Energy S.A.B. de C.V.’s (NYSE:VIST) growth profile, suitably positioning it within the Vaca Muerta region that is known for its potential in the energy sector.

The firm is thus optimistic about Vista Energy S.A.B. de C.V.’s (NYSE:VIST) future despite a negative free cash flow to equity in the short term, largely attributed to working capital consumption and tax payments.

Vista Energy S.A.B. de C.V. (NYSE:VIST) is an oil and gas company involved in the production and exploration of oil and gas. Its operations are divided into the Mexico and Argentina geographical segments, and its assets include Vaca Muerta.

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Disclosure: None. This article is originally published at Insider Monkey.