Energy stock Clearway Energy (NYSE:CWEN) investors had a lot to smile about after Bank of America analysts upgraded the stock from Hold to Buy based on expectations that California power prices will trend higher. The market responded positively to the development, with the stock up 11.89% at the time of writing.
According to Bank of America analyst Julien Dumoulin-Smith, the company has “compelling upside potential given higher pricing in Californian power markets. He added that the prices support “above-average dividend growth more than offsetting the impacts of higher interest rates.”
Despite the analyst’s words, the company’s reality tells a different story. Shareholders at the company have battled with declining share prices. Over the last year, the company’s stock has declined by 37%, well below the market’s return of 12%.
Is Clearway Energy Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CWEN stock based on four Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $30.33 per share implies a 44.77% upside potential.
