JPMorgan Picks 3 Top Stocks In Alternative Energy On Heels Of Trump's 'Big Beautiful Bill'

The alternative energy sector continues to face some uncertainties after President Donald Trump signed the “One Big Beautiful Bill” (OBBB).

The Treasury Department has yet to review safe harbor guidelines, and there could be “potential changes to timelines, minimum capex, or definitions of beginning/continuing construction,” according to JPMorgan.

Analyst Mark Strouse named three stocks as his top picks, citing “U.S. manufacturing, diversified end markets, and/or long-term cash flow visibility.”

Check out other analyst stock ratings.

• First Solar Inc FSLR: Overweight rating and price target of $208. The company is booked through 2026 and partially into 2030, Strouse said. While the 45X manufacturing credits remain unchanged in OBBB, the new restrictions on FEOC (foreign entities of concern) could lift average selling prices, he added. Section 232 tariffs (primarily targeting steel and aluminum imports) and AD/CVD (anti-dumping/countervailing duty) tariffs could boost demand and prices, the analyst stated. He expects bookings activity to resume over the coming quarters.

• HA Sustainable Infrastructure Capital Inc HASI: Overweight rating and price target of $42. The company has exposure to diversified end markets, with stable project spreads despite higher cost of capital, Strouse said. He considers HA Sustainable Infrastructure Capital’s three-year financial targets as conservative, given the credit rating upgrade in mid-2024.

• Brookfield Renewable Corp BEPC and Brookfield Renewable Partners LP BEP: BEPC has a price target of $38 and BEP has a price target of $29. Brookfield Renewable’s “scale and diversification provide relative safe haven,” the analyst stated. The company has enough liquidity to acquire “quality businesses and platforms that lack access to growth capital,” he further wrote.

Price Action: At the time of publication on Tuesday:

• Shares of First Solar haddeclined by 0.39% to $177.64.
• HA Sustainable Infrastructure Capital’s stock had climbed 3.44% to $27.64.
• Brookfield Renewable’s shares had risen by 0.47% to $36.24.
• Brookfield Renewable Partners LP had risen by 0.55% to $27.46.

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