Solaris Energy Infrastructure's (SEI) has "multiple attractive" growth opportunities ahead, driven by "grid bottlenecks" that are expected to continue and intensify through 2030, Morgan Stanley said in a report Tuesday.

Solaris owns and installs gas-turbine-based power generation directly at customer sites and sells electricity through multi-year contracts, offering what it calls a "power-as-a-service" model, analysts noted. The approach enables operators to secure primary and backup power at competitive costs while bypassing grid delays that in some regions stretch five to seven years. The company manages 760 megawatts of capacity, up from 150 MW last year, and expects to reach 2,200 MW by 2028, the report said.

Solaris' use of industrial gas turbines is viewed as particularly "competitive," with the company able to deliver power one to three years faster than utilities in many markets. A three-year time advantage is worth roughly $11 per watt to hyperscale operators, compared with Solaris' estimated cost of $1.0 to $1.3 per watt, the report said.

The investment bank initiated the company's coverage with an overweight rating a price target of $68, reflecting a "disconnect" between the stock's current trading price and the company's future growth potential. It estimates that the company's existing contracted fleet and visible power generation supply through 2028 is worth about $40 per share "on its own."

Shares of the company were up 1.9% in recent Tuesday trading.

Price: 49.54, Change: +0.72, Percent Change: +1.49