Clean technology companies exposed to data centers, battery storage, and onsite power, including GE Vernova (GEV) and Bloom Energy (BE), are poised to see a strong inflection in orders driven by artificial intelligence energy demand, Morgan Stanley said Thursday in a Q2 earnings preview note.

Citing these secular tailwinds, the firm refreshed its models, raising its price target on First Solar (FSLR) to $245 from $230 with an overweight rating, and bumping Plug Power (PLUG) to $1.65 from $1.50 with an underweight rating.

Morgan Stanley defended Bloom Energy following a short report published yesterday, calling the bearish arguments surrounding scandium supply and financing structures "overblown" and reconfirming its overweight rating and $310 price target.

The firm also maintained an overweight rating on GE Vernova with a $1,250 price target, labeling it an energy transition powerhouse positioned to benefit from secular global power trends and higher gas turbine contracts. Other infrastructure-linked names expected to see upside surprises in data center and OEM orders include Fluence Energy (FLNC), Innio (INIO), and Shoals Technologies Group (SHLS).

Still, analysts at Morgan Stanley remain cautious on a near-term rebound in residential solar demand for Sunrun (RUN), though it noted that safe-harboring activity could provide an upside surprise to consensus estimates for original equipment manufacturers like Enphase Energy (ENPH) and SolarEdge Technologies (SEDG).

Morgan Stanley issued an underweight rating and $27 price target on Enphase, citing weaker residential solar demand, potential changes to the Inflation Reduction Act, tariffs and margin pressure. It also reiterated an equal-weight rating and $15 price target on Sunrun, noting the company's scale and rooftop solar market share while warning that an uncertain policy and macroeconomic environment could continue to weigh on demand.