How a Tax Rule Could Aid Renewable Spending. Schneider Electric Says It Could Be Big.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2024
0mins
Source: MarketWatch
- Schneider Electric's Investment: Schneider Electric is utilizing the "transferability clause" in the Inflation Reduction Act to boost spending on renewable power generation in the U.S.
- Tax Credit Transfer Agreement: Schneider committed to investing in Texas-based clean energy projects using a Tax Credit Transfer Agreement with ENGIE North America for solar and battery storage systems.
- Market Growth: Sales of tax credits are expected to grow from $20 billion to $80 billion due to the ease of sale under the Inflation Reduction Act.
- Benefits of Credit Transfer: The transferability provision allows for more capital availability to build renewables faster, positively impacting demand for Schneider's equipment.
- Response and Market Performance: Response to the announcement has been positive, with Schneider's ADRs up 33% over the past year, reflecting optimism about increased investment in renewable energy.
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Analyst Views on SU
Wall Street analysts forecast SU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SU is 49.83 USD with a low forecast of 41.06 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 53.690
Low
41.06
Averages
49.83
High
70.00
Current: 53.690
Low
41.06
Averages
49.83
High
70.00
About SU
Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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