Latest news with #JulienDumoulin-Smith
Yahoo
28-05-2025
- Business
- Yahoo
CenterPoint Energy's EPS Forecast Prompts Jefferies To Lift Price Target
Julien Dumoulin-Smith, a Jefferies analyst, reiterated his Buy rating on CenterPoint Energy, Inc. (NYSE:CNP) on May 27 while raising his price target from $42 to $43. The analyst's optimism around CNP is predicated on the expectation of more capital expenditure, which is thought to have the potential to surpass the present upside scenario of $2 billion by an additional $3 billion. With an anticipated 8.4% compound annual growth rate in earnings per share over the coming five years, until 2029, CenterPoint Energy's future appears promising. The company's strong cash flow, which might gain from either the extension or the resale of mobile generation assets in 2030, as well as the possible sale of additional gas Local Distribution Company (LDC) assets, supports this forecast. Additionally, Dumoulin-Smith predicts that the company's funds from operations to debt (FFO/D) ratio will improve, rising to 14.4% from the 13.8% predicted for this year—a 60-basis-point increase. While we acknowledge the potential of CNP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CNP and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and Disclosure: None.
NBC News
22-05-2025
- Business
- NBC News
Solar stocks plunge as Republican tax bill worse than feared for clean energy
Solar stocks plunged Thursday after House Republicans passed a tax bill that terminates key clean energy credits. Residential solar installer Sunrun plummeted more than 35%. The legislation ends tax credits for installers like Sunrun that lease equipment to customers. The GOP bill is a 'worse than feared' scenario for clean energy, as it takes a 'sledgehammer' to the Inflation Reduction Act, Jefferies analysts led by Julien Dumoulin-Smith told clients in a note. Some 70% of the rooftop solar industry now uses lease arrangements, making the bill disastrous for companies like Sunrun, Guggenheim analyst Joseph Osha told clients. Enphase and SolarEdge sank about 16% and 24%, respectively, as sales of their inverters would take a hit from lower demand for rooftop solar. The bill also ends the investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after Dec. 31, 2028. Those credits have played a key role in the rapid expansion of utility-scale solar projects in the U.S. Solar stocks exposed to the utility sector tumbled, with Array falling more than 13% and Nextracker down more than 6%. Array and Nextracker make devices that allow solar panels to track the position of the sun. First Solar, however, fell just over 3% as the bill left the manufacturing tax credit relatively unscathed. First Solar is the biggest producer of solar panels in the U.S. with a large domestic manufacturing footprint. 'Manufacturing subsidies do not appear to have been touched — good news for FSLR,' Osha said. While the bill is bad for solar, Jefferies expects the Senate to make changes to the legislation.
CNBC
22-05-2025
- Business
- CNBC
Solar stocks plunge as Republican tax bill worse than feared for clean energy
Solar stocks plunged premarket on Thursday after House Republicans passed a tax bill that terminates key clean energy credits. Residential solar installer Sunrun plummeted more than 35%. The legislation ends tax credits for installers like Sunrun that lease equipment to customers. The GOP bill is a "worse than feared" scenario for clean energy, as it takes a "sledgehammer" to the Inflation Reduction Act, Jefferies analysts led by Julien Dumoulin-Smith told clients in a note. Some 70% of the rooftop solar industry now uses lease arrangements, making the bill disastrous for companies like Sunrun, Guggenheim analyst Joseph Osha told clients. Enphase and SolarEdge plummeted about 18%, as sales of their inverters would take a hit from lower demand for rooftop solar. The bill also ends the investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after Dec. 31, 2028. Those credits have played a key role in the rapid expansion of utility-scale solar projects in the U.S. Solar stocks exposed to the utility sector tumbled, with Array and Nextracker down 14% and 5%, respectively. Array and Nextracker make devices that allow solar panels track the position of the sun. First Solar, however, fell just 1% as the bill left the manufacturing tax credit relatively unscathed. First Solar is the biggest producer of solar panels in the U.S. with a large domestic manufacturing footprint. "Manufacturing subsidies do not appear to have been touched – good news for FSLR," Osha said. While the bill is bad for solar, Jefferies expects the Senate to make changes to the legislation.
Yahoo
16-05-2025
- Business
- Yahoo
Why NRG, the S&P 500 top performer in 2025, has more room to run
NRG Energy (NRG) is the best-performing stock of the S&P 500 (^GSPC) so far in 2025. Jefferies US power, utilities, and clean energy research managing director Julien Dumoulin-Smith tells Market Domination co-hosts Julie Hyman and Josh Lipton he's still bullish on the energy stock despite its upward run so far this year. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Well, NRG Energy at the top of the leaderboard is the best performer in the S&P 500 so far this year. The Texas energy giant up about 73% year to date, and the company recently announced a $12 billion deal to acquire power generation assets from LS Power. Here with more on this data center play, let's get to Jeffries's managing director, Julian DuMoulin Smith, who's joining us now to discuss. Julian, and it's funny we were just talking about meta because obviously one of the things that has driven NRG and a lot of other power plays has been this thirst for power to fuel data centers. But energy has overtaken them this year. What in your view has been the big catalyst or catalysts for that outperformance? Yeah, um and and thanks so much for the time. Look, I think in summary, if I were to put it in a nutshell, you've got three or four factors, but really it's the data center factor that's driving the outperformance here. Look, I use NRG as a tortoise versus hare, right? I mean, you've got a lot of other power companies, utility companies that worked very well 2024, very much in vogue. This company has been very nimble in articulating its plans with respect to data centers. It's really started to bore some fruit just so far this year. So, when you think about um the expectations and the update that was announced even just earlier this week, it wasn't just the LS power acquisition. It was also a slew of different data points about how the company is positioned around data centers, further progress delineating milestones through the course of the year. So, I think it was half a reaction to an accretive transaction, but also equally so a very favorable update on some of the data center activities that they're looking to do in partnership with new construction with GE renova on building out several new power plants through the decade. Can I just ask you, the move in this stock is remarkable. I mean, Palantir like, right? It's it's up nearly 75% this year already. But I know you, when you talk to your clients, you say this one is still a buy here. So, you obviously would argue valuation still very attractive. Yeah, I mean, look, I I use the tortoise versus hair. People wanted to go for, you know, much more uh financially and operationally geared companies last year. This company didn't get as much of people's attention. They were perceived as a non-power company. They had they've got some diversification in other segments, such that really this was not the go-to data center stock uh that many people had perceived it to be up until the last few months. I mean, I remember when we upgraded the stock back in the fall, people thought we were a little off in terms of why why would you get involved with this thing for data center construction? Yet, they have some of the soonest CODs and services for some of their gas plant construction out there, um uh relative to their IPP peers. A, and then B, look, I think just when you look at estimates and estimate revisions, this company has probably some of the most tangible potential out there, especially relative to some of these other power companies, right? If you want exposure to this sector, you know, they just said they're at a 14 plus percent EPS. That guidance is going to head higher. Our numbers are at 16% plus EPS growth through the decade. You don't get that with many other stocks, not to mention at this valuation. I mean, you know, up until the last few days, the stock was at a significant discount relative to this kind of growth rate. And more to the point, street numbers have been obviously too low for a while. And I I still think, you know, even today as people internalize this transaction, numbers are going to continue to head higher. Management, I think as soon as 2Q could be talking about revising up their full year 25 guidance. As soon as 3Q, we could be talking about revising the long-term guidance even further. They left some clues on the last call. Look, I don't think this is just a one-trick pony like data centers. And more to the point, you own the stock for a flurry of different data points that are going to materialize almost with a specific quarterly cadence through the entire year. Julian, I'm curious when it comes to the data centers. We have had sort of a a trickle of deals, not yet a flood of deals between some of these power operators and large tech. And of course, the most high profile one, Microsoft and the the restarted reactor plan for Three Mile Island. So, do we expect those kinds of what they call front of the meter deals, the unregulated deals um with a company like NRG and and big technology? Sort of what like we've been kind of waiting for more of those to come, right? Yeah, no, absolutely. I mean, I think we still are. I mean, we're waiting across both the power companies and utility companies through the course of this year to see some of those data points transpire. Uh this summer is going to be a crucial moment. Look, we've seen a steady slew of them. Admittedly perhaps not in the exact permutation as you allude to, but I think the street's been very keen to, right, and perhaps not as concentrated with select counterparties as the street's keen to see. Rather, we've seen a little bit more of diversification, perhaps more so in some of the regulated markets than even with the power companies. But this company in particular, you know, I think expectations have been very low up until very much of late. And that's what's sort of interesting for this company. This has been a sort of the dark horse, if you will. And that's that's why I think there's been such an acute move higher in the stock. This is something of a catchup. That's why I don't turn my head and I'm like, look, don't you know, don't don't be too nervous here. This is just following the leader of of the other companies that clearly reflect even more pro forma data center expectations than this stock does after its latest run. That's what's important to keep in mind here. 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Yahoo
16-05-2025
- Business
- Yahoo
Why NRG, the S&P 500 top performer in 2025, has more room to run
NRG Energy (NRG) is the best-performing stock of the S&P 500 (^GSPC) so far in 2025. Jefferies US power, utilities, and clean energy research managing director Julien Dumoulin-Smith tells Market Domination co-hosts Julie Hyman and Josh Lipton he's still bullish on the energy stock despite its upward run so far this year. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
