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Morgan Stanley raises price target on Vistra, here's why
  + stars: | 2024-03-27 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley raises price target on Vistra, here's whyStephen Byrd, head of Morgan Stanley's Global Sustainability Research, joins 'The Exchange' to discuss companies that could benefit from powering newly-developed AI, how AI is putting pressure on power grids in some regions, and more.
Persons: Morgan Stanley, Stephen Byrd ,, Morgan Stanley's Organizations: Morgan Stanley's Global Sustainability Research
It's also growing capacity for renewable energy three-fold through 2027, giving it one of the largest renewable pipelines in the world. Byrd pointed to the company's leadership in new technology, including energy storage and carbon-free electricity. The energy stock has tumbled more than 28% this year after sidestepping 2022's bear market and finishing the year more than 18% higher. AES YTD mountain AES, year to date The other stocks in his top ideas list for the Americas — Deere , Eastman Chemical , New Fortress Energy and Nu Holdings — remained. AI and real-time sensing could help improve decision making around food distribution and waste, Byrd said.
Persons: Morgan Stanley, Stephen Byrd, It's, Byrd, Nu Holdings —, Deere, That's, Nu, — CNBC's Michael Bloom Organizations: AES, Americas, Deere, Eastman Chemical, New Fortress Energy, Nu Holdings Locations: Brazil
The transition to clean energy won't be equal across sectors, according to Morgan Stanley Research. The Wall Street bank broke down segments of the energy transition that will benefit and others that will be challenged by the transition to clean energy. For this list, CNBC picked stocks Morgan Stanley thinks stand to benefit from the move toward clean energy, with a special focus on shares with overweight and equal weight ratings. The stocks in this list fall into one of four categories: — Energy storage and fuel cells. "Not all incumbent utilities will gain from the energy transition," Byrd wrote Wednesday.
Persons: Morgan Stanley, Stephen Byrd, Stocks, Byrd, Morgan Stanley's Organizations: Morgan Stanley Research, CNBC, Products, Chemicals Inc, Linde PLC, Air Products, Chemicals, Energy, Occidental Petroleum, Exxon Mobil, Chevron, Oil, Pacific Gas and, Edison International Locations: California, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley's Byrd: The most concerning companies and characteristics in the clean energy spaceStephen Byrd, Morgan Stanley equity analyst, joins 'The Exchange' to discuss where investors should look in the energy space, where financial conditions look more favorable and more.
Morgan Stanley's list of the biggest rising stars in the socially conscious investing space includes four U.S. stocks. But the stock hugely outperformed last year, rising 25% while the S & P 500 dropped 19.4%. DE 5Y mountain Deere & Co. Another name listed by Morgan Stanley is Eastman Chemical . Management estimates that the Kingsport plant will have a 15% rate of return for the company, while the other plants will likely be closer to 12%, Morgan Stanley said. EMN NFE 1Y mountain Eastman Chemical Nu Holdings , a Brazilian digital banking company that trades on the New York Stock Exchange, also made Morgan Stanley's list.
Morgan Stanley honed in on publicly traded companies that are improving on ESG in ways that can boost shareholder returns. "We think ESG rate of change will be a critical focus for investors looking to identify companies that can generate alpha and ESG impact," he said in a note to clients in late 2022. Though he said both approaches to ESG screens can be useful, he specifically looked for companies doing under-the-radar ESG work. Eighty-percent of analysts rate the stock a buy, FactSet data shows. Roughly two-thirds of analysts rate the stock as buy or overweight, and the average price target implies upside of nearly 15%.
Embracing sustainability doesn't have to come at the expense of financial performance — Morgan Stanley named several European companies it says have managed to show just that. These stocks are rated overweight and have average upside of around 20% to 35%, the bank added. Morgan Stanley described the company as a "global leader" in cement decarbonization, and its "ambitious" medium-term decarbonization target puts it in a "league of its own." Morgan Stanley also named German utility firm RWE on its list. The bank estimates that RWE will achieve around 16 billion euros ($17 billion) of free cash flow in 2023.
With a new year underway, there's an opportunity to scoop up some names that investors sold to save on taxes in 2022, according to Morgan Stanley. In fact, Morgan Stanley fielded more inquiries on tax-loss selling strategies in 2022 than in any other year, analyst Todd Castagno wrote in a note Friday. Morgan Stanley looked for those popular stocks that have derated but may be repurchased once the tax loss is realized. Plug Power has the most upside to Morgan Stanley's price target — a whopping 288%. Morgan Stanley named the solar energy company a top pick after the Inflation Reduction Act was signed into law in August.
The recent sell-off in clean tech is a good buying opportunity, according to Morgan Stanley. Clean tech stocks bounced after the IRA, but then reversed as part of broader risk-off sentiment, renewed interest rate sensitivity and a rotation from high-growth and unprofitable tech stocks, analyst Stephen Byrd wrote in a note Friday. "The recent move in clean tech stocks is overblown and doesn't reflect fundamental changes in the outlook for clean energy," Byrd said. "We expect the IRA will drive significant demand for clean energy technologies and accelerate clean hydrogen growth in the US — this view has not changed over the last two months despite the clean tech selloff." Solar energy company Sunrun is a "significant" IRA winner, but has given up most of the gains it made on the legislation, Byrd pointed out.
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