Shares of solar, elective vehicle and fuel cell companies all rallied Monday. The Senate approved what J.P. Morgan analyst Mark Strouse called “the largest policy change in U.S. history’ The bill, named the Inflation Reduction Act, provides billions of dollars for clean and renewable energy production.

J.P. Morgan’s Strouse: “We view the Inflation Reduction Act as the largest policy change in U.S. history to accelerate growth in what we have viewed as an already inevitable energy transition to renewables.” Strouse raised his stock price targets and estimates for the alternative energy sector.

Strouse believes “further upside” remains as investors had expressed some uncertainty over whether it would be approved by the Senate. “We view companies with existing domestic manufacturing as the most immediate beneficiaries, while demand should also accelerate, likely even further when domestic manufacturing is more established,” he says.

Strouse said SolarEdge trades at a premium to its peers. He still rates the stock overweight and raised his stock price target to $419 from $373. Strouse also upgraded TPI Composites Inc. and downgraded energy and water use measurements provider Itron Inc.
Posted by BI bizpoke
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