Jefferies starts First Solar, Enphase stocks at buy ratings
Analysts at Jefferies late Thursday announced the start of their alternative-energy stock coverage, bestowing upon First Solar Inc. (FSLR), Enphase Energy Inc. (ENPH), and SunRun Inc. (RUN) stocks buy ratings. In times of "uncertainty we see better risk/reward for companies with exposure to utility-scale, strong backlog and balance sheets," the analysts said. They rated the stocks of SunPower Corp. (SPWR) and Array Technologies Inc. (ARRY) as hold. Catalysts for the sector heading into next year include more clarity on Inflation Reduction Act provisions and the "stabilization" of interest rates, the analysts said. Alt-energy and particularly solar-power stocks have significantly underperformed this year, thanks to macroeconomic factors such as the higher interest rates and regulatory changes in states such as California that have increased payoff times for solar power. Among the buy-rated stocks, First Solar is a top pick, "as it meets our key criteria including strong backlog ... supportive pricing in a declining pricing environment, strong balance sheet," and gross margins going to about 25% in 2025 from 18% this year, the analysts said.
-Claudia Assis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
12-14-23 1720ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth