JPMorgan picks two ‘defensive’ clean tech stocks as 2025 top picks

JPMorgan says the clean technology group faced a challenging setup in 2024, amid still elevated interest rates, “waning” balance sheets, and slower than expected demand growth. The firm expects its coverage of primarily unprofitable growth stocks to face similar headwinds into 2025, with electric vehicles, EV charging, and hydrogen “in a holding pattern” until project developers and customers have more policy certainty under the second Trump administration. While clean energy broadly may be de-prioritized with a Republican majority, there is room for bipartisanship when it comes to energy independence and protectionism against China, the analyst tells investors in a research note. On the stocks, JPMorgan sees further volatility ahead. Its top picks into 2025 are Overweight-rated EVgo (EVGO) and Enovix (ENVX), which the firm views as more defensive plays within clean tech. Negative sentiment on EVgo “feels overblown as the model is well-positioned for growth,” JPMorgan contends. It expects investors to become more constructive on the name as 2025 progresses and thinks Enovix should see sentiment continue to improve as it executes on commercial and manufacturing milestones this year. JPMorgan has Neutral ratings on Plug Power (PLUG), Archer Aviation (ACHR), and Underweight ratings on ChargePoint (CHPT) and Joby Aviation (JOBY). It also has an Overweight rating on Blade Air Mobility (BLDE).