Update shared on 24 Nov 2025
Fair value Increased 0.54%Analysts have raised Clearway Energy's fair value estimate slightly to $36.90. This update is supported by recent price target lifts as the company continues to outperform expectations and enhance long-term visibility.
Analyst Commentary
Analyst updates reflect growing confidence in Clearway Energy's ability to execute on strategic initiatives and deliver value for shareholders, while also highlighting a few areas of caution as the company navigates industry headwinds.
Bullish Takeaways- Bullish analysts have raised price targets multiple times, citing strong third-quarter results and Clearway Energy's improved financial outlook.
- The company has raised its 2025 guidance and introduced 2026 guidance ahead of expectations, providing greater long-term visibility for investors.
- Effective execution on both internal projects and third-party mergers and acquisitions has led to attractive Cash Available for Distribution yields and enhanced future growth potential.
- Clearway Energy's significant new solar acquisition is expected to deliver high returns and support management's ambitious long-term distribution targets.
- Some analysts remain cautious, maintaining neutral ratings due to recent volatility in markets and credit spreads, which could pose risks to valuation.
- Softer results in the power generation segment, driven by muted pricing trends and regional generation variability, may dampen near-term growth.
- Analysts note the importance of maintaining regulated exposure for hedge purposes, as unregulated businesses face greater uncertainty.
- Despite improved momentum and upside potential, ongoing volatility in broader markets continues to temper enthusiasm for the sector as a whole.
What's in the News
- On November 3, 2025, Clearway Energy's Board of Directors declared a quarterly dividend of $0.4528 per share on Class A and Class C common stock. The dividend is payable on December 15, 2025, to stockholders of record as of December 1, 2025 (Key Developments).
- Clearway Energy has entered into an agreement to acquire an 833MWdc (613MWac) operational solar portfolio from Deriva Energy and Manulife Investment Management. The transaction is expected to close by the second quarter of 2026 (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from $36.70 to $36.90, reflecting a modest positive reappraisal.
- Discount Rate has decreased from 9.96% to 9.83%, indicating a slightly lower expected risk in valuation assumptions.
- Revenue Growth projection remains largely unchanged at approximately 11%.
- Net Profit Margin has fallen significantly from 11.76% to 7.05%, representing a notable downward adjustment in expected profitability.
- Future P/E ratio has increased sharply from 27.6x to 46.1x, suggesting a higher valuation multiple anticipated for future earnings.
Disclaimer
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