The use of stationary energy storage is two years away from a positive inflection point, says Oppenheimer analysts, but they are recommending Tesla Motors (NASDAQ:TSLA), Johnson Controls (NYSE:JCI) and Ideal Power (NASDAQ:IPWR) as investor buys sooner rather than later.
The firm sees stationary energy storage as "clearly the area which poses the most potential for change to the status quo" in power generation, delivery and consumption, and it foresees a fundamental change in the relationship between utilities and consumers as well as penetration of renewable energy sources.
Oppenheimer views TSLA as a "transformative battery-powered product company with leading expertise in cell design, packaging, associated software, human-machine and machine-machine interaction design."
The firm likes JCI as an established name in energy storage, whose Power Solutions segment should generate double-digit EBIT growth as it more than doubles its production of high-capacity absorbed glass mat batteries.
IPWR is "an intellectual property play in energy storage and power management... well positioned for steady, profitable growth for the next 5-7 years," Oppenheimer says.