Monthly Meter Reading: The May Edition

Research evidence excerpt

Monthly Meter Reading: The May Edition

Update

June 24, 2026 07:40 AM GMT

Morgan Stanley & Co. LLCMRegulated & Diversified Utilities / IPPs | North David Arcaro, CFA

America Equity Analyst

David.Arcaro@morganstanley.com +1 212 761-1817

Alexandre Zimmermann

Research AssociateMonthly Meter Reading Alexandre.Zimmermann@morganstanley.com +1 212 761-3617

Zhizhong Dong

The May Edition Research Associate

Jonathan.Dong@morganstanley.com +1 212 761-5632

Amanda Huang

In May, utilities underperformed the S&P's +5.26% return by 1,045 bps, with US 10-

Research Associate

Year yields increasing ~6 bps from the beginning of the month. Notable moves Amanda.Huang@morganstanley.com +1 212 761-4197

during the month included the outperformance of XIFR (+20.58%), D (+4.82%), and Jeremy Herring

TLN (+3.86%), and the underperformance of NRG (-13.55%), OGS (-12.16%), and HE (- Jeremy.Herring@morganstanley.com +1 212 761-4182

11.75%).

Diversified Utilities / IPPs

We raised our SEI PT and reaffirmed our high conviction in the stock (here). North America

Industry View Attractive

Earlier this month, we raised our PT to $90/share (from $81/share) to incorporate Regulated Utilities

1Q26 results, the third long-term data center contract, the expansion of the second North America

Industry View In-Line

deal, and the 100MW of newly procured capacity. Importantly, we continue to have

See our price target changes in Exhibit 1.high conviction in SEI as a key supplier of on-site power and with an active deal

pipeline and differentiated track record. We expect the company to continue to

expand capacity even with a tight supply chain in the near term.

We collaborated with our colleagues in Asia and Europe to size the global

merchant battery opportunity (here). By 2030, we estimate the total opportunity