Zhi Tong Cai Jing·2025-10-29 03:32Group 1 - The core viewpoint is that the valuation of the U.S. utility sector is significantly undervalued due to a combination of favorable factors [1] - Analysts from Wells Fargo suggest that the utility sector is fundamentally more structural than cyclical, indicating a shift in investor mindset towards viewing utilities as growth-oriented rather than yield-oriented [1] - The traditional perception of utilities as risk-averse or income-focused investments is no longer applicable, as the sector's defensive characteristics provide market support while allowing for upward flexibility in various themes [1] Group 2 - The bullish outlook on the utility sector is supported by fundamental supply and demand dynamics, which represent a structural change and serve as the growth engine for utilities and independent power producers [1] - Constellation Energy (CEG.US) is highlighted as a top investment recommendation for independent power producers, seen as a prime opportunity to capitalize on large-scale enterprise and resource abundance trends [1] - Sempra (SRE.US) is recommended as a top pick among utility companies, particularly as an ideal buying opportunity before a key adjustment period in February, given its current undervaluation and high growth potential [1]