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On Tuesday, Jefferies analysts showed confidence in Clearway Energy (NYSE:CWENa) Inc. (NYSE:CWEN) by increasing the price target from $36.00 to $37.00, while reiterating a Buy rating on the stock. The analysts highlighted Clearway Energy’s consistent performance, growth potential, and reliable yield - currently at 6.5% with a 10.8% dividend growth over the past year - as key factors making it a top pick within the clean energy sector. According to InvestingPro analysis, the stock appears fairly valued based on its current Fair Value estimate.
Clearway Energy’s recent earnings beat prompted Jefferies to adjust their cash available for distribution (CAFD) per share estimates slightly upwards by less than 3%. With an EBITDA of $1.02 billion and a healthy current ratio of 1.59, the company’s financial position supports these projections, which remain aligned with management’s targets for 2025 to 2027.
The analysts at Jefferies noted that while current market valuations do not fully reflect Clearway Energy’s growth trajectory, there are opportunities for the company to exceed the higher end of its guidance. They underscored the potential for long-term compounding growth that is not yet priced into the stock, signaling a positive outlook for the company’s future performance. InvestingPro subscribers can access 8 additional key insights about CWEN’s growth potential and valuation metrics in the comprehensive Pro Research Report.
Clearway Energy, with its focus on clean energy generation and infrastructure, has been recognized for its track record of executing on its strategic plans. The company’s ability to deliver consistent returns to investors, along with its growth prospects, contribute to its appeal as an investment within the renewable energy space.
As the market continues to evolve, Clearway Energy’s strategic initiatives and growth beyond its guidance could become increasingly significant. The revised price target by Jefferies reflects the firm’s anticipation of these developments and the potential for Clearway Energy to continue to stand out in its sector.
In other recent news, Clearway Energy Inc. reported impressive financial results for the fourth quarter and full year 2024, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.75, far exceeding the forecasted $0.0448, and its revenue reached $1.37 billion, well above the anticipated $299.82 million. These results highlight Clearway Energy’s strong performance and strategic investments in renewable energy and storage projects. Despite these positive earnings, the company’s stock experienced a decline in trading. Clearway Energy also reaffirmed its 2025 cash available for distribution (CAFD) guidance range of $400-$440 million, reflecting confidence in its growth strategy. The company is focusing on expanding its renewable energy projects, including the acquisition of the Tuolumne project and the Honeycomb Battery Hybridization Program. Additionally, Clearway is developing multi-technology clean energy complexes across five states. Clearway’s strategic focus and reaffirmed guidance have positioned it well for future growth in the competitive energy market.
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