![]() ![]() The utility’s stock has more than 40% upside over the next 12-18 months, analysts wrote.ĭTE Energy’s utility subsidiary has proposed to spend about $9 billion to add 4,400 MW of solar, 1,000 MW of wind and 760 MW of battery storage in the next decade. We don't expect challenges with access to debt or tax equity capital to finance renewables projects,” analysts wrote. “Demand for renewables remains very high and AES has a robust pipeline. ![]() Utility and power generator AES has underperformed its peers in recent weeks, but the firm said concerns over banking industry challenges and a lower 2023 outlook than anticipated “are overdone.” The utilities sector outperformed the S&P 500 in March, but within the group a few lagging utilities may be ripe for opportunity, the firm said. ![]() Nevertheless, the high demand for renewables could help to fuel a rise in some utilities’ stock price, Morgan Stanley said. The CEO of Arcadia, the largest domestic manager of community solar projects, said the bank’s collapse will “ have an impact on the broader industry.” The collapse of Silicon Valley Bank left utilities relatively unscathed but led to uncertainty in the residential and community solar sectors. It remains unclear if the United States is in a recession, but the month of March was troubling for the financial sector. And utilities are “one of the few outperformers in the period right after a recession commences.” Utilities tend to most outperform the market in the year before a recession and three months after one starts, according to the research note. Looking back 30 years, the firm said the utilities sector and the energy sector show “positive relative returns” around recessions. ![]()
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