David Arcaro, an analyst from Morgan Stanley, has initiated a new Buy rating on Solaris Energy Infrastructure (SEI).
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David Arcaro has given his Buy rating due to a combination of factors that highlight Solaris Energy Infrastructure’s strategic positioning in the market. The company addresses critical grid bottlenecks by providing onsite power generation for data centers, which is crucial as the demand for data center power continues to rise. This approach not only ensures faster access to power but also offers a competitive cost advantage with proven technology.
Furthermore, Solaris has secured generation equipment through 2028, ensuring a stable supply chain and contracted cash flows. The market is currently underestimating the company’s growth potential beyond 2028, making the stock an attractive investment. Additionally, the increasing grid constraints in the U.S. create a significant market opportunity for Solaris, as they offer a scalable and quick-to-deploy solution that can provide a substantial time-to-power advantage over traditional grid connections.
In another report released on November 17, Piper Sandler also maintained a Buy rating on the stock with a $65.00 price target.