The renewables industry faces challenges, but UBS remains optimistic, identifying two global stocks—Orsted and RWE—with over 55% upside potential. Despite concerns following U.S. President-elect Donald Trump’s plans to reduce renewable energy subsidies, UBS analysts believe fears are exaggerated, citing past growth during Trump’s first term driven by state and corporate emission goals. The sector struggled from 2021 to 2024 due to higher government rates and heavy capital investment. However, analysts foresee improvements by 2025, including industry discipline and easing supply chains. UBS has a buy rating for Orsted and RWE, predicting significant price gains.
