Utilities Up Amid Deal Anticipation -- Utilities Roundup

Features Dow Jones Newswires

Shares of power-plant operators rose amid anticipation of deal activity.

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Analysts at brokerage Morgan Stanley anticipate further consolidation among independent power producers to be an influence on the price of utility stocks in the second half of 2017. Among other "potential catalysts ahead" for utilities and merchant power companies are further reductions in the cost of renewable energy and tax reform, which would favor those with large unregulated power-production businesses.

Another likely catalyst: "potential administration efforts to support coal and nuclear," the Morgan Stanley analysts said.

Separately, Morgan Stanley compiled a list of "climate-change solution" stocks, or companies whose fortunes are tied to the mitigation of carbon emissions. There were several solar-power companies on the list, including Canadian Solar and Jinko Solar.

"Our biggest surprises were the negative results for Tesla and Guoxuan High-Tech, where our illustrative calculations suggest the carbon emissions generated by the electricity required for Electric Vehicles are greater than those saved by cutting out direct vehicle emissions," said the Morgan Stanley analysts.

-Rob Curran, rob.curran@dowjones.com

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(END) Dow Jones Newswires

August 15, 2017 16:44 ET (20:44 GMT)