Morgan Stanley said high utility costs and growing awareness may drive a consumer shift to environmentally friendly products in housing — and there's a group of stocks that could benefit.
That recovery should be driven by growing activity in the single-unit housing market, analyst Laura Sanchez said in a July 26 report.
Morgan Stanley has five stocks with overweight ratings across the green housing landscape.
Both Sunnova and Sunrun have monster rebounds expected after underperforming the market so far this year.
The average analyst holds a buy rating, while the average price target implies the stock's 2023 rally could be coming to an end, according to Refinitiv.
Persons:
Morgan Stanley, Laura Sanchez, Sanchez, Sunrun, Johnson, — CNBC's Michael Bloom
Organizations:
NOVA, Trane Technologies
Locations:
U.S, California, Mexico