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: