Wolfe Research has begun its coverage of the renewable energy market with an "overweight" recommendation, and analyst Steve Fleishman recommends that investors seek exposure to the sector, reports Bloomberg News.

The analyst says that third-quarter earnings in the sector could see headwinds from supply chain issues, although long-term prospects remain intact.

He sees US President Joe Biden's renewable energy credits as a potential catalyst come the turn of the year.

Generally, the analyst prefers companies with recurring income and customer-focused models.

Wolfe Research begins tracking solar energy firms Sunrun, SolarEdge Technologies and Enphase Energy, battery supplier Sunnova Energy and fuel cell company Plug Power with an "overweight" recommendation.

Power generation equipment manufacturer Bloom Energy, solar energy firm First Solar and utility Ørsted get a "peerperform" recommendation, and hydrogen company Ballard Power Systems gets an "underperform" recommendation.

Ørsted's share price declined on Wednesday by 0.1 percent to DKK 1,000.5.

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