At Extreme Investor Network, we are dedicated to providing you with the most up-to-date and valuable information on investing opportunities. Today, we want to highlight UBS’s list of highest-conviction energy picks for the rest of the year. These picks cover a range of companies, from artificial intelligence plays to oilfield services leaders.
According to analyst Josh Silverstein, UBS’s top buy-rated stocks in the energy and utilities sectors include Suncor Energy, Coterra Energy, SLB, NextEra Energy, and First Solar. These sectors have been performing well this year, with gains of 12.5% and 8.9%, respectively, outperforming the broader market.
NextEra Energy and First Solar are identified as direct beneficiaries of AI-driven electricity and data center demand. NextEra Energy, with its leading position in renewables development and strong balance sheet, is UBS’s top pick in the electric utilities subsector. Analyst William Appicelli sees upside potential for the stock, with a $90 price target suggesting a 15.1% jump.
First Solar, on the other hand, is positioned well for AI-driven electricity demand growth and increasing U.S. protectionism. UBS assigned the stock a $350 price target, implying a 26.5% upside. Analyst Jon Windham believes that First Solar’s differentiated technology and its share of the utility-scale market make it deserving of a higher multiple.
In the oil services and equipment sector, SLB (formerly Schlumberger) stands out as Silverstein’s top pick. With a $68 price target, there is potential for roughly 49.2% upside. Despite a 12% decline in the stock this year, SLB’s discounted valuation compared to historical multiples and its high-margin Digital and Integration unit make it an attractive investment opportunity.
Other favorites identified by UBS include Coterra Energy and Suncor Energy. These companies present unique opportunities in the energy and utilities sectors that investors may want to consider.
Stay tuned to Extreme Investor Network for more insightful analysis and expert recommendations on investing in today’s dynamic market landscape.