Vistra: A Great Volatility Hedge Through 2026 - Reiterate Buy

  • VST's recovery has been well deserved, thanks to its robust FQ1 '25 performance metrics and the reiterated FY2025/FY2026 guidance. This is aided by its fully hedged position at approximately 100% of its expected generation volumes for 2025 and approximately 90% for 2026. These may temper the risks arising from OPEC+'s accelerating output hikes and the drastic moderation in crude oil/natural gas spot prices nearer to pre-pandemic levels.