S&P Global Ratings Upgrades Vistra Corp. (VST) Buoyed By Acquisitions and Diverse Generation Portfolio

Vistra Corp (NYSE:VST) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 12, S&P Global Ratings upgraded the stock to investment grade. Consequently, it raised its credit rating to BBB- from BBB+, impressed by its stable outlook.

The upgrade is in response to the company inking a power purchase agreement for its Comanche Peak Nuclear Power Plant. Additionally, it has completed the acquisition of natural assets from Lotus infrastructure partners, further strengthening its pipeline.

The acquisitions have expanded the company’s diverse generation portfolio while adding efficient assets across key competitive markets, including PJM, New England, New York, and California. Increased capacity at PJM is credit-positive, driven by robust market fundamentals that support strong auction results.

According to the rating firm, the company’s risk profile has improved significantly amid booming business, resulting in improved long-term cash flow visibility. S&P Global Ratings expects Vistra Corp to deliver an adjusted debt to EBITDA ratio in the mid-3.0x range by year-end, which should decrease to 2.6x-2.8x BY 2026 and 2027.

On the other hand, analysts at KeyBanc initiated coverage of the stock with an Overweight rating and a $217 price target. According to the research firm, the company’s scale, diversified generation mix, and strong cash flow affirm its long-term prospects.

Vistra Corp. (NYSE:VST) is a large, integrated U.S. power company that generates, sells, and delivers electricity, owns diverse power plants (gas, nuclear, coal, solar, and batteries), and serves millions of retail customers.

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