inakiantonana/E+ via Getty Images
Investors should take advantage of recent weakness and buy select stocks in the clean technology and renewable energy sectors, including NextEra Energy (NYSE: No), Morgan Stanley analysts said on Tuesday that the bank was reassessing the impact of various election results on clean energy.
Analysts led by Andrew Percoco believe that even if the Republicans win a sweep, a full repeal of the Inflation Cut Act is unlikely, but a reduction or partial repeal is possible, with a focus on electric vehicle taxes Credits and direct payments.
Morgan Stanley believes that domestic manufacturing, nuclear power and wind and solar tax credits have bipartisan support, reducing the risk of repeal regardless of government composition, whether it is a united Democratic government or a divided government, the Irish Republic Neither the military nor the pace of clean energy development will change.
The bank doesn’t expect its outlook on the pace of U.S. data center construction, nuclear production tax credits or the potential for data centers to co-locate with nuclear power plants to change regardless of the presidential administration, which bodes well for Constellation Energy. and Vistra (VST).
Morgan Stanley said “demand for renewable energy is a powerful force” and believes new sources of demand can outweigh the risks of changes to tax credits for wind, solar and storage, saying it will be AES Corp. ( AES), First Solar (First Solar) buyers.
ETFs: (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (ERTH), (SMOG)
