Analyst Raises 'Buy' Recommendation For This Stock!

<p>&nbsp;Tenaga Nasional Bhd (Bhd) is seen to benefit from Malaysia's energy transition agenda.</p><p><br /></p><p>MIDF Research raised its rating on TNB to 'buy' from 'hold' because it is confident that it will be central to the agenda.</p><p><br /></p><p>The government is now aggressive in renewable energy (RE) targets and constructive policies for the transition.</p><p><br /></p><p>The research firm said TNB is not only expected to earn additional returns following the expansion of RE capacity, but could also accelerate its efforts to decarbonize the grid.</p><p><br /></p><p><br /></p><p>Under Malaysia's Renewable Energy Roadmap, nine gigawatts (GW) of RE capacity is required by 2035, according to MIDF.</p><p><br /></p><p>He added that the National Energy Transition Roadmap (NETR) also focuses on a 70% RE mix target which suggests the need for new RE capacity of more than 30GW until 2050.</p><p><br /></p><p>Following that, it argues that TNB is one of the main beneficiaries of the opportunity due to its large balance sheet.</p><p><br /></p><p>At the time of writing, TNB shares were trading unchanged at around RM9.60 with a market capitalization of RM55.56 billion.</p>