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Home » These energy stocks are outperforming but undervalued
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These energy stocks are outperforming but undervalued

Editor-In-ChiefBy Editor-In-ChiefDecember 10, 2025No Comments3 Mins Read
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The utility attracted the attention of Goldman Sachs analysts in November. Ceres Power, Vestas Wind Systems and SSE were among the top stocks watched by investment banks last month. The name comes from the bank’s Conviction List – Director’s Cut, which is a monthly update on stocks the bank recommends for purchase, selected by a subcommittee. It also lists stocks that did well and stocks that did poorly in November. Energy stocks dominated the top performers. This includes UK-based pharmaceutical giant AstraZeneca, which is up 12.2% month-on-month, the paper said. Here are the companies that made the most money and why. Britain’s Ceres Power posted a 38.4% gain in November after a licensing deal with Chinese engine and energy company Weichai Power, which Goldman rates as a buy. Goldman said the stock price rose 20% on the day of the announcement. The stock rose 50% in the month, but Ceres “absent some of this outperformance due to broader concerns about AI capital spending and data centers,” the note said. Goldman Managing Director Michele Della Viña “continues to like the name as a play on the undervalued data center,” the memo added. Denmark’s Vestas Wind Systems Vestas Wind Systems rose 16% in November, outperforming after “solid third-quarter results,” according to Goldman. Both companies beat profits, reported strong cash generation and announced share buyback plans, the investment bank noted. The Danish company’s adjusted operating profit amounted to 416 million euros ($485 million), an increase of 77% year-on-year. Ajay Patel, director of utilities and clean energy technology at Goldman, expects Vestas to grow further as previous uncertainties such as U.S. tariffs and ocean energy costs fade. “He also expects to continue share buybacks, fueling discussions about the size of value gains in the coming years,” the memo said. British SSE energy infrastructure giant SSE rose 14.8% in November after the company announced plans to invest £33bn over the next five years. It included £2bn of equity and was fully funded, with the share price up 17%, Goldman said. Patel said the announcement improves the outlook and “puts an end to the funding debate and provides greater regulatory clarity and scope for increased leverage.” However, despite the strong performance, the investment bank removed SSE from its conviction list in December. Although the memo does not specifically state the reasons for this, it does emphasize that there are many reasons why a stock may be removed from the list. Eliminations could occur if the stock is downgraded, the bank’s target price is met, or if the listing subcommittee determines there are better opportunities elsewhere. “Importantly, inclusion on this list is not a stock rating, and addition to or removal from this list does not necessarily imply a change in an analyst’s investment rating for a stock,” the memo said.



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