Update shared on04 Sep 2025
Despite legislative clarity boosting sentiment, valuation concerns following a 30% YTD rally and lingering doubts about long-term growth prospects have led analysts to hold Clearway Energy’s price target steady at $36.11.
Analyst Commentary
- Resolution of the "One Big Beautiful Bill Act" and the President's Executive Order provides greater policy clarity for the clean energy sector, considered a positive catalyst.
- Bullish analysts note that upcoming management commentary on safe harboring levels and backlog additions could offer further upside insight.
- Ongoing uncertainty remains about conviction in renewable energy names, despite recent legislative clarity.
- Valuation concerns have prompted bearish analysts to downgrade the stock after a substantial 30% year-to-date increase.
- Bearish analysts see the need for either growth acceleration or increased visibility on long-term plans beyond 2027 to justify further upside.
What's in the News
- Clearway Energy filed a $100 million at-the-market follow-on equity offering for Class C Common Stock.
- The Board of Directors declared a third-quarter 2025 quarterly dividend of $0.4456 per share on Class A and Class C common stock.
Valuation Changes
Summary of Valuation Changes for Clearway Energy
- The Consensus Analyst Price Target remained effectively unchanged, at $36.11.
- The Future P/E for Clearway Energy has significantly fallen from 59.30x to 34.59x.
- The Consensus Revenue Growth forecasts for Clearway Energy remained effectively unchanged, at 8.4% per annum.
Disclaimer
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