Clearway Energy price target raised to $38 from $36 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Clearway Energy (CWEN) to $38 from $36 and keeps an Overweight rating on the shares. While the recent U.S. election has raised uncertainty around federal clean energy policy, which is likely to serve as an overhang until Inflation Reduction Act revisions are clearer, Morgan Stanley sees limited impacts for the renewable infrastructure space, the analyst tells investors in a research note. The firm continues to believe the risk of wholesale repeal of the Inflation Reduction Act is very low, supported by the significant amount of clean energy investment being made in states with greater elected Republican representation and a bipartisan preference for policies that incentivize domestic manufacturing. The analyst believes demand for renewables over the long-term is more durable than is currently appreciated by the market.