CNBC Pro

Morgan Stanley sees 'rare buying opportunity' in 5 clean energy stocks

Share prices across the clean energy industry have fallen sharply in recent months, and Morgan Stanley believes this has created a buying opportunity for investors.

In a note last week, Morgan Stanley analysts upgraded a basket of stocks in the clean energy (or clean tech) sector to outperform, citing potential for continued growth in renewables and energy storage due to a supportive economic backdrop and falling costs.

Even after a slight resurgence over the past week, the iShares Global Clean Energy ETF, an aggregate of 30 stocks in the sector, is still down more than 27% from a recent peak on Jan. 7, having climbed 142% in 2020.

"We believe the significant pullback in stock prices across the Clean Tech industry represents a rare buying opportunity, with relatively modest growth now implied in many stocks," the analysts wrote.

Here are the stocks that the Morgan Stanley picked out:

More In Street Calls

Home improvement companies could see increased sales following Hurricane Ian, Wells Fargo says
CNBC ProHome improvement companies could see increased sales following Hurricane Ian, Wells Fargo says
Wells Fargo downgrades Lockheed Martin, believes defense company will lag behind competitors
CNBC ProWells Fargo downgrades Lockheed Martin, believes defense company will lag behind competitors
This solar power stock could double as more people install panels, Northland says
CNBC ProThis solar power stock could double as more people install panels, Northland says