Evercore analysts say regulated utilities safer bet amid tariff turmoil

Fluence Energy

03/04/2025 15:59

** Analysts at brokerage Evercore say U.S. utilities to be most affected by tariffs over the near-term are likely to be those with more reliance on international supply chains and international sales exposure

** Which would mean those power producers with unregulated renewable exposure like AES AES.N, NextEra Energy NEE.N and Fluence Energy FLNC.O, analysts say

** Longer term tariffs on some inputs will result in higher spend, which will increase utility bills further and pressure earnings growth, they added

** Regulated utilities, on the other hand, are relatively insulated near-term, as costs are passed through to customers, but the tariffs could have longer-term implications - Evercore

** "We do believe regulated utilities are the place to be as the market likely de-risks and a flight to safety comes to fruition as the market digests the impact of these announcements" - Evercore

** While no meaningful impact expected to Independent Power Producers in near-term, longer term tariff plan could erode planned spend associated with large load growth, they added

 (Reporting by Seher Dareen in Bengaluru)

 ((Seher.Dareen@thomsonreuters.com;))