According to Raymond James, the New Year will promote clean energy reserves. Despite solid fundamentals, the sector had a dismal 2022 – the worst since the global financial crisis, analyst Pavel Molchanov said in a note Wednesday. He points out that the WilderHill Clean Energy Index lost 46% last year. However, Raymond James is forecasting a 30% to 40% gain for the index this year. Molchanov writes: “It is clear that the demand side of the equation was not the culprit behind the inefficiency over the past year. The factors driving demand vary around the world, but are everywhere.” . The Inflation Reduction Act, for example, is providing “a broad-based catalyst for the US energy transition,” he said. However, while supply chain conditions are improving, the risks are not over. Commodity prices and their impact on the company’s bottom line remain in the spotlight. “In any event, on a day-to-day basis, these stocks tend to trade, for there’s no better word, emotionally: they have a high beta; driven by sentiment and dynamics. volume; and prone to constant fluctuations, sometimes including prices for no apparent reason,” Molchanov said. With that in mind, he upgraded two clean energy companies: Chart Industries to buy heavily from market performance and Maxeon Solar Technologies to outperform market performance. Molchanov said his call for Chart Industries, which provides liquefied natural gas technology, services and equipment, was an “opportunistic upgrade.” Shares hit an all-time high in early November, but then lost half of their value in “just days” after the company announced it would acquire Howden, a supplier of gas handling solutions. and privately held air. Molchanov noted that the deal brings with it the risk of an overly large balance sheet and integration uncertainty. The idea is therefore for people with a high degree of risk tolerance, he said. “Just to be clear, we don’t predict that stocks will return to their pre-Howden highs anytime soon. But we do think the worst is over. Funding package — a combination of secured debt and debt. and unsecured, and common and preferred equity — locked in, so we no longer have to consider what the cost of capital will be,” Molchanov wrote. His $160 price target implies a 39% gain from Tuesday’s closing price. Chart Industries along with the likes of Bloom Energy and FTC Solar are on Raymond James’ strong buying list. The company is also optimistic about Maxeon Solar. The stock has recovered from the Inflation Reduction Act but is down nearly 40% from its 52-week high in September, Molchanov said. “[As] Because of this recent weakness, stocks are no longer priced in the long-term upside potential from the as-yet-uncleared plan to establish the US manufacturing footprint,” he said. This is the story of 2025, he points out. However, the company’s underlying business – manufacturing in Mexico, Malaysia and the Philippines – is priced very attractively, he said. and funding — this should be considered the ‘icing on the cake’,” he wrote. His $22 price target implies a 44% increase from Tuesday’s close. The company also raised level NextEra Energy to market performance from underperform, but note that it is not Instead, the call is about yields, the Federal Reserve’s clear conclusion on the strongest part of the interest rate hikes and more comfort in the market with a stable interest rate environment,” said chael Bloom, who contributed to the report.