Why Clearway Energy Stock Is Losing Its Charge Today
It is a choppy market for energy companies, and Clearway Energy (NYSE: CWEN) is no exception. Shares of Clearway are down about 5% on Monday after Evercore ISI lowered its price target for the company.
Clearway is one of the largest producers of renewable energy in the U.S., producing upward of 8 gigawatts of energy via wind and solar as well as natural gas. The company operates the portfolio under long-term power purchase agreements with utilities and corporate buyers, providing steady income that fuels its dividend.
But in a world where interest rates are on the rise and high-dividend stocks offer a less risky alternative, Clearway and other similarly structured energy companies have fallen out of favor. On Monday, Evercore ISI analyst Michael Lonegan lowered his price target on Clearway to $27 from $34 in response to market sentiment.
Source Fool.com
