The Inflation Reduction Act, which has just been signed into law, is an alternative to renewable energy and will benefit a number of stocks across industries, according to Morgan Stanley. The company said the bill, which includes $369 billion for energy and climate initiatives, is a “big deal for US clean tech.” The act prompted Morgan Stanley to raise its growth and pricing targets across the industry. “The Inflation Reduction Act … will, in our view, accelerate the decarbonization of the U.S. economy, lead to a significant increase in domestic production, and provide the support needed to launch the decarbonization technology is on track to become commercially viable,” lead analysts Stephen Byrd wrote Thursday in a note to clients. Sunrun residential solar mounting system is one of the company’s top choices. Byrd says Sunrun’s net worth per customer could grow from $7,000 to $10,000 thanks to initiatives in IRAs as well as the ability of higher utility bills to drive consumers to solar. . The company raised its price target on Sunrun from $70 to $79, about 125% above where the stock closed Thursday. “We are currently forecasting installs to grow by 25% annually through 2025,” far exceeding the previous 20% growth forecast. Sunrun’s partnership with Ford is another factor that Byrd points to could lead to an appreciation in the stock. Shares of Sunrun have jumped more than 40% month-on-month after the surprise announcement of the legislation pushed shares in the clean energy ecosystem higher. But the stock is still 42% below its recent high in November. The movement is not unique to Sunrun. Both the Invesco Solar ETF and the iShares Global Clean Energy Fund are up more than 20% last month, but are still more than 10% below their November peak. However, the recent price increase has led some to say that the increase is premature. But Morgan Stanley said the clean tech sector as a whole is still being valued at modest growth. AES is another of Morgan Stanley’s top picks, with the company saying future growth in renewables isn’t accurately reflected in the stock price. Byrd raised his price target on the utility company’s stock from $29.50 to $32, 23% above Thursday’s closing stock price. “We have updated our model to reflect stronger utility-scale solar and battery storage growth through 2035, as well as additional renewable growth opportunities for the market. green hydrogen under the IRA,” the company said. The package also includes support for green hydrogen, prompting Morgan Stanley to raise its target on Plug Power. “The biggest beneficiary, from an asset class standpoint, in our view is clean hydrogen,” the company said. Byrd increased his target from $42 to $53, which is 86% above the stock price ending Thursday. “We are now forecasting 51% annual revenue growth through 2030 compared to our previous forecast of 46% annual growth through 2030,” he said. — Michael Bloom of CNBC contributed reporting.