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Goldman Sachs laid out its top stock plays for an energy sector that is likely to face disruption this year as President-elect Donald Trump assumes office. Trump will be inaugurated on Jan. 20 on an energy platform that favors fossil fuel production over clean energy. Still, there are some renewable energy stocks that are positioned to do well in the coming year, according to Goldman. First Solar’s domestic manufacturing base positions the company to benefit from Trump’s threatened tariffs, according to the investment bank. The stock is also one of the most exposed names to utility-scale solar, a market that faces strong demand growth from artificial intelligence and data centers. Goldman has a price target of $279 for First Solar, implying nearly 46% upside. “FSLR represents a high-quality growth stock with clear visibility for compounding EPS growth through 2027 and beyond and represents an attractive risk-reward profile,” analysts led by Neil Mehta told clients this month. The investment bank is also bullish on Array , a company that manufactures devices for solar panels to track the position of the sun. Array’s revenue coverage from its current backlog stands at a record high, which indicates sales going into 2025 are mostly de-risked, according to Goldman. The investment bank has a price target of $11 for Array, implying about 66% upside from current levels. Utility NextEra Energy is poised for upside this year on robust renewables growth and as investors get more clarity about how Trump will deal with the Inflation Reduction Act. Goldman has a price target of $92 for NextEra, suggesting about 29% upside from currently levels. In the oil and gas space, Goldman sees ConocoPhillips , Kinder Morgan and EQT Corp. as winners this year. Conoco has a strong record of quarterly execution with exposure to major growth projects in the liquified natural gas space and the Willow oil project in Alaska, according to the bank. Goldman has a target for Conoco, about a 30% increase from current levels. The investment bank favors pipeline company Kinder Morgan and natural gas producer EQT Corp. on the growing demand for gas as electricity consumption increases. Goldman is targeting $29 per share for Kinder, implying modest upside of about 4%. EQT has a target of $59 per share, suggesting about 24% upside.
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