Wells Fargo bullish on clean energy sector in 2023

Ballard Power Systems

06/01/2023 15:19

** Wells Fargo says it is bullish on clean energy sector on
strong underlying demand, especially in Europe, and legislative
support from the Inflation Reduction Act
    ** The brokerage expects the Fed's rate tightening in early
2023 as a likely near-term headwind for clean energy sector, but
considers the fundamental and regulatory backdrop as much
improved in 2023 and beyond
    ** Long-term tailwinds remain in place to support
accelerated deployment of clean energy including government and
corporate de-carbonization goals, ESG mandates, increasing grid
instability, and rising utility rates - Wells Fargo
    ** Says it favors solar over hydrogen due to the former's
better economics and strong underlying demand
    ** Upgrades Sunrun Inc  RUN.O , Sunnova Energy  NOVA.N  and
First Solar  FSLR.O  to "overweight" and SunPower Corp  SPWR.O 
to "equalweight"
    ** Downgrades Bloom Energy  BE.N  to "equalweight" and
Ballard Power Systems  BLDP.O  to "underweight"
    ** Wells Fargo's top picks for 2023 includes solar names
with large projected improvements in margins, such as Array
Technologies  ARRY.O , First Solar  FSLR.O , and Solaredge
Technologies  SEDG.O 
 (Reporting by Arshreet Singh in Bengaluru)
 ((Arshreet.Singh@thomsonreuters.com))