While 2024 has been rough for clean energy stocks, JPMorgan analyst Mark Strouse sees 2025 as a year for selective opportunities in the sector.
Strouse points to four standout stocks – First Solar Inc FSLR, Nextracker Inc NXT, HA Sustainable Infrastructure Capital Inc HASI, and Brookfield Renewable BEP BEPC. As top picks for investors looking to unwrap some green energy potential.
First Solar: A Bright Spot Despite Political Clouds
First Solar's strong foothold in domestic manufacturing and likely retention of IRA 45X credits makes it a top contender.
Strouse notes that potential U.S. import tariffs or regulations could disadvantage foreign competitors, giving First Solar a unique edge. With resumed bookings activity expected in 2025, this solar giant could shine even brighter, according to Strouse.
Price target: $282 by December 2025.
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Nextracker: Tracking Success With Superior Execution
Since its IPO, Nextracker has outperformed its peers with margin resiliency and geographic diversification.
Its exposure to 45X tax credits and safe harbor orders positions it for potential upside in 2025. For investors searching for a dependable player in utility-scale solar solutions, Nextracker offers a compelling value proposition with significant potential for long-term returns, the analyst says.
Price target: $58 by December 2025.
Hannon Armstrong: Diversified & Investment-Grade Ready
Strouse highlights Hannon Armstrong’s strategic resilience, citing its robust end-market diversification and newly secured investment-grade rating as key differentiators in a volatile economic landscape.
The analyst sees the company’s potential for a lower cost of capital and consistent operational execution as critical catalysts for future growth, signaling a promising trajectory amid complex market conditions.
Price target: $42 by December 2025.
Brookfield Renewable: A Safe Haven In Clean Energy
Brookfield Renewable stands out by offering unprecedented scale and strategic diversification in a volatile market, capitalizing on the growing appetite for de-risked assets.
The analyst points to the company’s record-breaking capital recycling strategy and consistent dividend payments as key attributes that position Brookfield Renewable as an especially compelling option for risk-averse investors seeking stability in the clean energy sector.
Price targets: $30 for BEP and $34 for BEPC by December 2025.
Why Now?
Despite lingering macro headwinds and political uncertainties, Strouse believes clean energy's long-term fundamentals remain solid. Lower costs per watt and increasing power demand underpin the sector’s growth, offering compelling entry points for discerning investors.
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