Goldman Sachs has identified its top stock picks for the energy sector, which is expected to experience significant changes in 2017 with President-elect Donald Trump's inauguration. Trump's energy platform prioritizes fossil fuel production over clean energy. However, Goldman Sachs believes certain renewable energy stocks are well-positioned for success. Goldman Sachs highlights First Solar's domestic manufacturing base as advantageous in light of Trump's proposed tariffs.
Additionally, First Solar's exposure to utility-scale solar, a market experiencing strong demand driven by artificial intelligence and data centers, is considered favorable. Goldman Sachs has a price target of \$279 for First Solar, representing nearly 46% upside. The firm also favors Array, a manufacturer of solar panel tracking devices. Array's record-high revenue coverage from its current backlog suggests sales through 2025 are largely secure. Goldman Sachs has a price target of \$11 for Array, implying about 66% upside. Utility NextEra Energy is anticipated to benefit from robust renewables growth and increased clarity regarding Trump's stance on the Inflation Reduction Act. Goldman Sachs sets a price target of \$92 for NextEra Energy, suggesting a potential 29% increase. In the oil and gas sector, Goldman Sachs identifies ConocoPhillips, Kinder Morgan, and EQT Corp. as potential winners. ConocoPhillips boasts a strong track record of quarterly performance and exposure to major growth projects in the liquefied natural gas and Willow oil project in Alaska.