Update shared on 07 Nov 2025
Fair value Increased 1.63%Analysts have increased their price target for Clearway Energy from $36.11 to $36.70. They cite stronger revenue growth, improved profit margins, and ongoing execution on growth initiatives following robust quarterly results and higher forward guidance.
Analyst Commentary
Recent Street research provides insight into how analysts view Clearway Energy's progress and prospects, highlighting both encouraging factors and areas for caution. The following summary distills key takeaways from their commentary.
Bullish Takeaways- Bullish analysts have consistently raised their price targets, reflecting confidence in Clearway Energy's improved outlook and higher growth potential.
- Clearway's Q3 results exceeded expectations, with upwardly revised guidance for 2025 and the introduction of 2026 guidance well ahead of consensus.
- Successful acquisitions, including a major operational solar portfolio, are expected to deliver strong CAFD (Cash Available For Distribution) yields and enhance the company’s long-term capital efficiency.
- Sustained execution on growth initiatives, such as sponsor drop-downs and third-party M&A, increases long-term visibility and underpins analyst optimism around valuation upside and future cash flows.
- Bearish analysts remain cautious because of volatility in credit markets and widening spreads. These factors could impact financing costs and risk profiles for new investments.
- Expectations are mixed for industry peers. Some analysts anticipate softer results for Power companies compared to Regulated Utilities because of less favorable generation trends and muted pricing.
- Although Utilities are likely to benefit from stable loads and new rates, a balanced portfolio with some regulated exposure is recommended as a defensive hedge. This suggests lingering concerns about sector stability.
What's in the News
- On November 3, 2025, Clearway Energy’s Board declared a quarterly dividend of $0.4528 per share for Class A and Class C common stock. The dividend is payable December 15, 2025, to stockholders of record as of December 1, 2025 (Company filing).
- Clearway Energy reached an agreement to acquire an 833MWdc (613MWac) operational solar portfolio from Deriva Energy, LLC and Manulife Investment Management. The transaction is expected to close by the second quarter of 2026 (Company press release).
Valuation Changes
- Fair Value: Increased from $36.11 to $36.70, reflecting a modest upward revision in analysts' expectations.
- Discount Rate: Declined from 10.42% to 9.96%, indicating reduced perceived risk in future cash flows.
- Revenue Growth: Raised from 8.40% to 11.00%, showing improved growth projections for the company.
- Net Profit Margin: Improved from 9.13% to 11.76%, reflecting stronger profitability forecasts.
- Future P/E: Lowered significantly from 59.52x to 27.59x, representing a more favorable valuation based on expected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.