According to JPMorgan, investors might consider betting on three oppressive clean-tech stocks that are in decline to outperform the market this year. Banks are bracing for more downside risk as fears of an impending recession and heightened risk-averse sentiment. But analyst Bill Peterson said in a note Monday to clients that these stocks will benefit from favorable headwinds from policy. “However, while we continue to focus on and recommend investors to invest in PLUG , CHPT and ENVX , expectations have largely been reset and we see the potential for similar outperformance. for as we proceed during the year,” he wrote. “From an industry perspective, we continue to prioritize companies that support hydrogen and charging infrastructure over vehicle manufacturers and component suppliers.” Peterson said support for hydrogen, electric vehicle charging and batteries under the Inflation Reduction Act should drive strong demand for these stocks going forward. The recent pullback of many of these names also represents a “solid entry point” and favorable risk-reward for participating investors over the long term. “We think our top picks will largely be able to sustain their revenue growth prospects based on strong long-term and sustained demand trends, supported by strong growth stocks,” he wrote. government policy wind like the IRA in the US”. One of those names is Plug Power, poised to benefit from a demand trend driven by the latest climate bill tax credits from the latest climate bill. While the Wall Street firm expects revenue below consensus expectations, Peterson predicts margins “to have an impact” in the second half of the year as production and scale improve, particularly in the electronics segment. feces. PLUG YTD Mountain Plug Power Stock in 2023 So far, the stock is down more than 28%. JPMorgan’s $20 price target suggests the stock could more than double from Friday’s close. Another name JPMorgan is betting long-term is ChargePoint as the long-term clean tech winner. Despite a more than 10% drop in stock this year and concerns about temporary delays in bringing chargers online, the company will look like first-quarter revenue is in line with consensus expectations. . While electric vehicle charging stations may cost less, Peterson considers the company a “clear leader” in the North American tier 2 charging market, which has significant growth potential in the coming years. next. Mount ENVX YTD Shared Performance in 2023 Peterson also named Enovix among the investment bank’s clean technology choices to capitalize on strong demand for batteries and favorable government policies. JPMorgan’s $18 price target means pin stock is up about 66% from Friday’s close. “Enovix is well positioned to win a design victory with strategic consumers in consumer electronics and drive significant revenue growth in the coming years thanks to its efficiency advantages,” he said. improved performance and safety of the battery cell”. “We think meaningful product and scale differentiation will drive margin expansion and long-term profitability.” – Michael Bloom of CNBC contributed reporting