Utility stocks are poised to capitalize on a clean energy future, according to Goldman Sachs.
The shift to clean energy will require a "significant" amount of capital investment, which will contribute to attractive earnings and rate base growth, Davenport said.
Among the names Goldman rated a buy are American Electric Power, NextEra Energy, Sempra and Southern Co. American Electric Power and NextEra Energy both hit several of Goldman's themes.
NextEra Energy offers more than 21% upside to Goldman's price target, plus a 2.5% dividend yield.
Meanwhile, Sempra is also an attractive growth opportunity, Davenport said.
Persons:
Goldman Sachs, enablers, Carly Davenport, Davenport, Goldman, Sempra, CNBC's Michael Bloom
Organizations:
Utilities, Fund, Industry, American Electric Power, NextEra Energy, Sempra, Southern Co . American Electric Power, NextEra, Florida, Electric, LNG, Infrastructure, Southern Co
Locations:
United States, Southern, FPL, Texas