Jefferies says ‘expensive’ valuations don’t always mean weak returns, highlights eight cases over 15 years

Jefferies said high valuations do not necessarily signal low returns, citing eight instances over the past 15 years in which sectors remained expensive yet continued to outperform the broader market. It said private power companies are entering a similar “thematic” rerating phase. Jefferies named JSW Energy, Adani Energy Solutions, Premier Energies and Siemens Energy as its preferred picks, pointing to structural drivers including lower energy storage costs, improving distribution-utility finances, data-center growth and rising electric-vehicle adoption.