The sustainability theme faces an uncertain future under President-elect Donald Trump, but Morgan Stanley has named a number stocks with major upside. The Wall Street bank identified its top stocks using this criteria: Overweight-rated with over 5% upside to Morgan Stanley’s target price; A market cap of over $2 billion; Revenue or capital expenditure exposure to sustainability themes. Here are two of Morgan Stanley’s top stocks with over 60% upside potential: EDP Renovaveis The investment bank is bullish on EDP Renovaveis and has a target price of 18 euros ($18.68), giving it nearly 66% upside potential. The Spanish pure renewables company operates wind and solar plants mainly in the U.S. and Europe. Morgan Stanley analyst Arthur Sitbon notes that the stock is now “undervalued with implicitly no value granted by the market to the group’s U.S. activities,” following the recent presidential election. The energy sector has been thrust into the spotlight given Trump’s desire to fight inflation by reducing energy costs, but also because of his low regard for renewables. Despite this, Sitbon says EDPR is “well-positioned to capture value-accretive opportunities in renewables.” This is because of “improving renewable market fundamentals, both in Europe … and in the US (with strong Big Tech demand for clean energy),” he added. “We also think concerns around potential roll-back of the IRA in the US are overdone.” Shares in EDPR are listed in the Euronext Lisbon exchange in Portugal and trade as an American Depositary Receipt under the ticker EDRVY . RWE Also on Morgan Stanley’s list is German electric utility company RWE , which it describes as a “global leader in renewables.” The bank’s analyst Rob Pulleyn sees RWE as “oversold on a combination of falling power prices earlier in 2024 and fears around renewables value creation.” Going forward, he “remains confident in the value creation potential of the company’s renewables investments” thanks to the robustness of the power purchase agreement market and healthy demand from AI plays and data centers. Shares in RWE are listed on the Frankfurt Stock Exchange and trade as an ADR in the U.S. under the ticker RWEOY . Morgan Stanley has a target price of 50 euros ($169.50) on the Frankfurt-listed stock, giving it almost 60% potential upside. — CNBC’s Michael Bloom contributed to this report.