HSBC starts Constellation Energy (CEG) and Vistra (VST) at buy and models $14 billion of buybacks at each
HSBC began coverage of Constellation Energy Corporation (CEG) at buy with a $335 target and Vistra Corp. (VST) at buy with a $190 target, forecasting earnings per share growth of 19% and 21% a year to 2030.
HSBC has opened coverage of two of the largest US power generators with buy ratings. It set a $335 target on Constellation Energy Corporation (CEG) and a $190 target on Vistra Corp. (VST). Investing.com reported both calls on Thursday, October 22, 2026, saying the notes came out on Tuesday. Neither outlet linked to a public HSBC summary.
The two calls share a frame. HSBC projects growth above the peer average at both companies through 2030, plus $14 billion of share buybacks at each over the next five years. It puts adjusted total shareholder return at 15% for both from fiscal 2026 through 2032.
For Constellation, HSBC models EBITDA, or earnings before interest, taxes, depreciation and amortization, growing 11% a year from 2026 to 2030. It sees earnings per share rising 19% a year over the same span. The bank puts about two thirds of Constellation earnings in the PJM grid region and its nuclear plants. HSBC said both its own per share estimates and the consensus run above the top of the implied 2029 earnings per share guidance from Constellation. It also sees annual capital spending climbing from $2.5 billion in 2025 to about $4.6 billion by 2030, citing upgrades and new plants.
For Vistra, analyst Meike Becker projects EBITDA growth of 9% a year and earnings per share growth of 21% a year from 2026 through 2030. She puts 2030 EBITDA a little above the consensus figure.
The same reports gave share prices of $270.74 for Constellation and $156.14 for Vistra. On those prices the targets sit 23.7% and 21.7% higher, as calculated by Trend & Ticker.
The buyback forecasts look different against each company's recent cash. Spread evenly, $14 billion over five years is $2.8 billion a year. Vistra produced $2.26 billion of free cash flow, meaning cash from operations minus capital spending, in the four quarters through June 2026. That is $5.12 billion of operating cash less $2.87 billion of capital spending. Constellation produced $309 million, from $4.21 billion less $3.90 billion. Both figures are as calculated by Trend & Ticker from the SEC filings of each company.
Both carry sizable debt into that plan. Constellation reported $24.7 billion of debt and $697 million of cash at the end of June. Vistra reported $19.6 billion of debt and $435 million of cash.
HSBC's start on Constellation follows CIBC, which began coverage at outperformer with a $358 target last week. Vistra plans to report third quarter results on November 6, 2026, the first chance to compare its cash flow with the buyback pace HSBC expects.
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