A Union Pacific train engine sits idle in a train yard in Salt Lake City, Utah on June 9, 2020.
AFP via Getty ImagesRenewable energy stocks doubled in value last year, though their ascent has been curtailed of late as fears around inflation have sent bond yields higher and growth stocks lower.
But analysts at Credit Suisse say the theme is still highly compelling, calling the long-term outlook second to none. For one, it’ll take some $3 trillion of annual investments to meet climate change targets.
Some 127 countries have signed up to net-zero greenhouse gas emission targets, and climate change regulations are expected to tighten further. This year’s United Nations climate-change conference, due to take place in Glasgow, Scotland in November, will further put attention on the sector.
Read:12 Stocks and Funds to Play the Coming Green Boom for Utilities
The Credit Suisse analysts find that growth during the next two years appears strongest for those exposed to hydrogen, transport energy efficiency and energy storage. Valuation, however, is challenging for most themes, though wind, building energy efficiency and green infrastructure have less aggressive multiples.
While there are more than 400 companies globally exposed to these themes, the analysts narrowed their preferred picks to 45 -- 15 each in Asia, the Americas and Europe. These are companies that analysts believe are either expected to remain sector leaders despite already having performed well or are companies who have yet to be fully rewarded for their exposure to the theme of the Green Economy, the analysts said.
Here are the Credit Suisse decarbonization picks for the Americas:
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March 12, 2021 at 08:18PM
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Here Are Credit Suisse’s Picks To Play the Decarbonization Of the World Economy - Barron's
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