Banks pick their favorite battery stocks and Goldman Sachs loves one
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Goldman Sachs loves one EV stock for its battery innovation – and it also makes the bank’s conviction list of top buy-rated stocks. HSBC has named energy storage companies as its top conviction themes. BYD (Chinese electric vehicle) company is rated buy by Goldman because of its innovative battery technology. It was described as market-leading in a May 23 research note. BYD is supported by Warren Buffett’s Berkshire Hathaway. It is China’s largest electric vehicle manufacturer. Sharmini Chetwode led the analysts at the bank, who stated, “BYD leads Chinese new energy vehicle sales (NEVs) for its differentiated technology (DM-i Hybrid, Blade Battery) and competitive designs.” According to the bank, research and development at the company is “uniquely large” and it also enjoys working with China’s FAW state-owned automaker. BYD H-shares were included in Goldman’s top 100 buy-rated companies list. International investors can trade H-shares on the Hong Kong Stock Exchange. Goldman’s research paper focused on supply chain resilience of firms and highlighted that BYD’s “integrated model” and broad production base, with five factories in China. HSBC’s Lithium Picks HSBC predicts that energy storage solutions will boom in the next decade. The analysts stated that “the increasing use renewables to decarbonise electricity generation and the rising penetration of electric vehicles in the future few decades” and “favourable movements in lithium battery prices (81% decline over the previous decade, 6% decrease in 2021) would lead to significant investment in Energy Storage. This could also result in substantial increases in Energy Storage infrastructure.” As lithium is an important metal for battery production, stock prices have surged sharply in the last year because projections indicate that there will be a large increase in demand. HSBC screened energy storage stocks and noted that the selection outperformed by the FTSE All World index 13% over the past year. The bank stated that energy storage is among its top convictions regarding climate change. Bio energy (where energy is made from bio- or organic materials) is the second. Read more These EV battery stocks will dominate — despite the threat posed by Tesla, Bernstein says Stocks keep hitting new lows. This is how you can protect your portfolio while still earning some income. Warren Buffett’s veteran growth investor picked stocks such as HSBC. HSBC also selected South Korean chemical firm LG Chem. It makes lithium-ion cells. In partnership with US automaker, GM partnered to develop the Ultium EV platform for GM. This company is aiming at becoming a global leader in EVs. HSBC selected Allkem, an Australian lithium producer. It aims for a 10% increase in global production over the next ten years, according to its website. The screen also showed Samsung SDI. The company is a pick for investment firm Bernstein too for its investment into a solid-state battery production pilot — such batteries use solid electrolytes and can hold more energy than those with liquid electrolytes. According to analysts at HSBC, “Energy Storage has been identified as the top-placed climate topic on our radar methodology.” The long-term investor sentiment measures trade at a discount relative historical levels. However, there are signs that the consensus is improving towards this theme. Other themes included renewable energy, including hydro power, that the bank considers less appealing. This report was contributed by Pippa Stevens, CNBC.
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Goldman Sachs loves one EV stock for its battery innovation – and it also makes the bank’s conviction list of top buy-rated stocks. Although HSBCIt named the top companies involved in energy storage as one of its “top conviction themes”.
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