Elon Musk advocates sustainable forms of energy – These two stocks are Wall Street favorites in this area

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• Tesla wants to accompany the way to sustainability
• TipRanks names two stock profiteers in this space
• Plug Power and Brookfield Renewable Energy Partners have upside potential

Tesla’s recent investor day left many investors perplexed. Especially with a view to new models, the company boss remained Elon Musk numerous details owed. However, the multi-billionaire became more detailed in his new master plan, which is already in its third round. The focus of the strategy announcements this year was the goal of making a sustainable future with renewable energies possible with the extensive electrification of the economy. Tesla wants to play an important role in this area, said the company boss at the event.

“There is a clear path to a sustainable energy planet,” Musk said. “It doesn’t require the destruction of natural habitats. It doesn’t require us to be strict and stop using electricity and sitting in the cold or anything like that.” In his view, one could “support a civilization that is much larger than the earth, much more than the 8 billion people could actually be sustainably supported on earth.”

TipRanks presents worthwhile investment opportunities

Investors have various opportunities on the financial markets to invest in sustainable energy stocks without having to invest in a car manufacturer’s shares. The website TipRanks, which uses artificial intelligence to provide retail investors with certain research tools through data analysis, has identified two sustainable energy stocks that have received stellar ratings from Wall Street analysts and offer upside potential.

plug power

US hydrogen company Plug Power is among two sustainability-focused energy stocks with the highest ratings from Wall Street analysts, according to TipRanks. 20 experts have the company on the list, the average price target for the Plug Power share is 25.65 US dollars. Based on the current share price on the NASDAQ, which is 12.16 US dollars, the upside potential for the share certificate is more than 110 percent (as of the closing price on 03/14/2023). 15 analysts have a buy rating for the stock, another 5 rate it at least as a hold.

Green hydrogen is a future technology and Plug Power is well positioned in this segment. The sector is likely to be politically promoted through subsidies worldwide, and those who have then created a strong starting position should benefit particularly strongly from this. Plug Power has recently been able to assert itself against the strong competition from Europe, NEL ASA: The energy group Uniper commissioned Plug Power to take over the design of the electrolyser technology as a supplier: Uniper wants to increase its electrolysis capacities in the Netherlands massively expand and build a plant with an output of 100 megawatts.

However, the latest figures from Plug Power were not well received on the market. Plug Power reported sales of $220.7 million for the past quarter. Here the estimates of the experts had amounted to an average of 281.2 million US dollars. For the full year, it reported a loss per share of Plug Power of $1.25. In the previous fiscal year, a minus of 0.82 US dollars per share had been on the books. Plug Power’s annual revenue was $701.44 million. The analysts’ estimate had been $756.5 million. Plug Power not only missed market expectations, but also delivered a disappointing outlook.

Nevertheless, the share certificate remains very popular with analysts. JPMorgan analyst Bill Peterson, for example, believes the company can handle “short-term challenges,” according to TipRanks, although it needs to prove it’s up to the task. “Plug continues to see strong demand from customers across all businesses, despite near-term delays in customer readiness, and revenue growth potential continues to be impressive, particularly in electrolyzers and stationary power…we see room for further gross margin improvements in 2023 due to scale, efficiency and… Subsidies, potentially allowing Plug to meet its 2023 profitability targets,” the analyst continued.

Brookfield Renewable Energy Partners

TipRanks has identified Brookfield Renewable Energy Partners (BEP) as the second analyst favorite among sustainable energy stocks. The company is covered by five analysts, three of whom have a buy rating on the stock and two others recommend holding. The average target price is $35.69 – compared to the current price level of $29.17, Brookfield Renewable Energy Partners stock offers upside potential of around 32 percent (as of the closing price of the stock on 03/14/2023). .

TipRanks calls the company a “clean energy powerhouse” and “a major player in renewable energy and climate change solutions.” The operator of renewable energy systems convinced the markets with its most recent quarterly report: Revenue rose by 9.2 percent year-on-year to USD 1.19 billion and exceeded the analysts’ consensus. Operating profit rose from $214 million to $225 million, and for the full year Brookfield even made a billion-dollar profit on an operating basis and also increased the dividend by 5.5 percent.

Eduardo Seda, analyst at Jones Research, rates this renewable energy player’s prospects as good and highlights the benefits of the company’s long-term contracting model, according to TipRanks. BEP can “enjoy both the long-term visibility and stability of its diversified revenue and cash flow generation and its sales growth based on long-term sustainability,” the expert said.

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Image sources: Plug Power Inc. , petrmalinak / Shutterstock.com