Analysts Lift Clean Energy Targets on AI Power Demand
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
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Gotrade News - A wave of analyst re-ratings swept across clean-energy and utility stocks this week. The moves collectively signal renewed institutional conviction in the AI power-demand theme.
The catalyst is surging electricity demand from artificial-intelligence data centers nationwide. That theme now anchors how brokers are valuing the entire sector.
Key Takeaways
Scotiabank, TD Cowen, and Jefferies all raised targets on clean-energy names.
AI data-center power demand was the common thread behind the upgrades.
BTIG trimmed Duke Energy's target slightly while keeping its Buy rating.
According to Insider Monkey, Scotiabank raised Brookfield Renewable's target from $36 to $42. The broker cited massive scale and close relationships with hyperscalers.
Brookfield reported record first-quarter funds from operations of $375 million, up 15% year over year. Strong capital access gives it room to fund long-term growth projects.
That scale lets Brookfield secure power-supply contracts tied to data-center expansion. The Outperform rating frames the company as a core holding for the clean-energy theme.
The boldest move hit Enphase Energy (ENPH) from TD Cowen. The broker doubled its target from $35 to $70 while keeping a Hold rating.
As reported by Insider Monkey, the optimism stems from solid-state transformer technology for AI data centers. Enphase projects an initial US opportunity exceeding 11 GW by 2031.
Full system demonstrations are due later in 2026, with customer pilots following in 2027. Volume shipments begin in 2028, so the doubled target reflects a long-dated payoff.
Utility Sector Consolidation
Jefferies upgraded Dominion Energy from Hold to Buy on Thursday (28/05). It lifted the target from $65 to $76 after the NextEra deal announcement.
The all-stock transaction worth roughly $67 billion combines two utility giants. The new entity would become the largest regulated electric utility in the world.
Shares of NextEra Energy (NEE) sit at the center of this consolidation. The merger targets global leadership in renewable energy and battery storage.
Not every revision moved higher in absolute terms this week. BTIG trimmed Duke Energy (DUK) from $141 to $139.
Despite the cut, BTIG kept its Buy rating with nearly 15% implied upside. Duke has signed 7.6 GW of electric service agreements with data-center customers.
Duke's total executed agreements now reach roughly 7.6 GW of contracted capacity. Advanced talks on a further 15.4 GW show data-center demand remains intense.
Collectively, these broker moves point in one direction of conviction. AI power demand has become the central pillar supporting clean-energy and utility valuations.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
