Clearway Energy raised, NextEra Energy Partners cut at Morgan Stanley

Clearway Energy (NYSE:CWEN) +2.2% in Wednesday's trading as Morgan Stanley upgrades shares to Overweight from Equal Weight with a $36 price target, raised from $25, seeing upside to current guidance through 2026 and potential for favorable post-2026 guidance that could catalyze the stock.

Morgan Stanley sees several pathways to growth in 2027 and beyond that remain underappreciated at current prices, including wind repowering, battery storage colocation, higher resource adequacy contract pricing, and sponsor dropdowns.

At the same time, the bank downgrades NextEra Energy Partners (NEP) to Underweight from Equal Weight with a $20 PT, down from $31, expecting questions around funding and related distribution cut risk will remain overhangs on the stock, with clarity potentially several quarters away.

HA Sustainable Infrastructure (HASI) is maintained at Overweight with a new $44 PT, raised from $30, seeing upside to guidance through execution on an origination pipeline where the company is sourcing higher yielding investments without changing risk parameters.