Evercore analysts say regulated utilities safer bet amid tariff turmoil

Analysts at brokerage Evercore say U.S. utilities to be most affected by tariffs over the near-term are likely to be those with more reliance on international supply chains and international sales exposure

Which would mean those power producers with unregulated renewable exposure like AES AES.N, NextEra Energy NEE.N and Fluence Energy FLNC.O, analysts say

Longer term tariffs on some inputs will result in higher spend, which will increase utility bills further and pressure earnings growth, they added

Regulated utilities, on the other hand, are relatively insulated near-term, as costs are passed through to customers, but the tariffs could have longer-term implications - Evercore

"We do believe regulated utilities are the place to be as the market likely de-risks and a flight to safety comes to fruition as the market digests the impact of these announcements" - Evercore

While no meaningful impact expected to Independent Power Producers in near-term, longer term tariff plan could erode planned spend associated with large load growth, they added