There is also the title of an Italian company among those destined to grow with the transition toward sustainable energy sources.
Morgan Stanley indicated which stocks will have good growth prospects with the boost of investments in renewable energies.
According to the investment bank’s estimates, the transition to sustainable sources will cost around 5 trillion euros ($5.5 trillion) by 2030.
“€1.6 trillion is already earmarked in the EU’s programs and budget. The remaining €3.4 trillion must come from national governments and the private sector,” Morgan Stanley analysts led by economist Jens Eisenschmidt wrote in a research note.
Stocks set to benefit are primarily in the utilities sector, including electric utilities, equipment manufacturers, and companies involved in gas-fired power generation.
“The power grid needed to connect new sources of clean energy to demand areas, as well as prepare the distribution system for widespread electrification, creates a unique infrastructure growth opportunity,” he said. In the electricity sector, the bank is overweight on the UK companies SSE and National Grid.
The bank’s overweight stocks include German company RWE, Danish company Orsted, and French company Engie.
Suppliers to the power industry, such as Siemens Energy, which manufactures goods including wind turbines, and Prysmian, a cable manufacturer, are also among Morgan Stanley’s top picks.
While the transition to cleaner energy is underway, the EU will continue to rely partly on gas-fired power, the bank said. “We continue to see a demand for gas-fired power to balance a power system more dependent on intermittently weather-related electricity sources: so we see an increase in the value of flexibility,” Morgan Stanley said.
British Gas owner Centrica is likely to benefit "for a longer period than the market currently anticipates".
In March, the EU announced plans to get 42.5% of the bloc’s energy from renewable sources by the end of the decade, up from the previous target of 32%.
While Morgan Stanley is positive about the opportunities for renewable energy companies, it said the EU’s targets would be "hard to hit".
Original article published on Money.it Italy 2023-08-12 08:00:00. Original title: Transizione energetica, sono 8 le aziende da tenere in portafoglio
