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Bloomberg ($):

European renewable-energy stocks, battered for much of this year, present a buying opportunity because their growth story remains intact. That  pitch from  Goldman Sachs is luring some investors — those not in a hurry, that is.

The way Goldman tells it, with governments promising to phase out fossil fuels and the environmental, social and governance mantra still resonating, the sector is bound to eventually provide rich rewards for the long-term investor.  RBC Wealth Management concurs.

“For us, the recent correction represents a good opportunity to build strategic positions in these stocks which should benefit from strong secular growth,” said Frederique Carrier, head of investment strategy at the firm. But “patience may be required,” she said.

After a stellar rise last year, renewables have fallen out of favor. The European Renewable Energy index is down 27% from its January peak, and three of the 10 worst-performing Stoxx 600 constituents in 2021 are renewable-energy plays — tumbling an average of 35%. Last year, they were among the best performers in the index, with Norwegian electrolyzer company  Nel ASA more than tripling and solar power firm  Scatec ASA more than doubling.

[Sam Unsted]

More: Goldman to RBC See a Slow-But-Sure European Green Stocks Revival

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