Jefferies Favor ITRI, AMSC And ENS In The Smart Grid, Wind, Energy Storage And Geothermal Industries
Jefferies says, “We believe smart grid, wind, energy storage, and geothermal benefit from similar macro industry trends including renewable portfolio standards, the need for additional electricity generation and transmission, infrastructure upgrades and buildouts, and environmental regulations supporting energy efficiency and reduced emissions. We believe a smarter grid and energy storage are key to managing new patterns in electricity supply and demand.”
“We see three major trends in smart grid: 1) increasing adoption of renewable generation and electric vehicles and grid capacity constraints as drivers; 2) proliferating industry partnerships and consolidation among industry incumbents and new technology entrants; and 3) renewed focus on the end consumer and demonstrating cost effectiveness to win regulatory approval,” the analysts add.
Jefferies adds,” We favor ITRI as an industry leader in advanced metering infrastructure (AMI) deployments…. We like ENS as a profitable energy storage company with a call option on advanced technologies over more speculative energy storage plays with unclear paths to profitability.”
“We believe AMSC is the best way to invest in the fast-growing China wind market, with exposure to several of China's largest wind turbine manufacturers. Additionally, demand for AMSC's grid solutions is driven by wind farm interconnection requirements,” the analysts say.
