Saturday Jan 28, 2023

RUN: 3 Solar Stocks Wall Street is More Bullish on Than Enphase –

Enphase Energy, Inc. (ENPH) in Petaluma, Calif., is a home energy solutions provider for the global solar photovoltaic industry. Shares of ENPH have been experiencing selling pressure lately due to ongoing supply chain disruptions and geopolitical tensions. The stock has slumped 18.9% in price year-to-date.

Also, the company is dealing with limited inventory for its energy storage products. Its cash and cash equivalents have declined 82.4% year-over-year to $119.32 million for its fiscal year ended Dec. 31, 2021. Its net income decreased 27.9% year-over-year to $52.59 million, and its earnings per share declined 26% year-over-year to $0.37.

The solar industry is projected to grow markedly, driven by a surge in demand and increasing investment in clean energy. According to a report by Report Linker, the solar power market in the U.S. is projected to reach 13.55 gigawatts by 2026, with a 9.69% CAGR. Given these factors, Wall Street analysts are bullish on quality solar stocks Sunrun Inc. (RUN), Sunnova Energy International Inc. (NOVA), and Shoals Technologies Group, Inc. (SHLS).

Sunrun Inc. (RUN)

San Francisco-based RUN designs, develops, markets, sells, and maintains residential solar energy systems in the U.S. The company sells solar energy systems and products that include panels, battery storage, and solar leads generated to customers. It primarily serves residential homeowners. 

This January, RUN replaced its $250 million recourse lending facility with a larger $425 million facility at enhanced terms and a longer tenor. This expands its asset borrowing base and supports more efficient inventory financing. The improved lending facility is expected to support the company’s continued growth.

Last December, RUN and BRIDGE Housing celebrated the completion of solar installations serving 94 rental homes in Suisun City, California. This partnership is expected to clean energy access and bill savings to renters across California and boost the revenue streams.

In the fiscal year 2021 fourth quarter, ended Dec. 31, 2021, RUN’s total revenue increased 35.8% year-over-year to $435.23 million. The company’s cash increased 18.8% over a year ended Dec. 31, 2021, to come in at $617.63 million. RUN’s total assets grew 14.6% year-over-year to $16.48 billion as of Dec. 31, 2021.

The $416.43 million consensus revenue estimate for the fiscal first quarter, ending March 31, 2022, represents 24.4% year-over-year growth from the same period in 2021. The Street expects RUN’s EPS to improve 30.5% year-over-year in the current quarter. The company has an impressive earnings surprise history; it has surpassed the consensus EPS estimates in three of the trailing four quarters.

The stock has gained 1.6% in price over the last five days. However, the 12-month median price target of $52.93 indicates a 128.8% potential upside from yesterday’s closing price of $23.13. The price targets range from a low of $16.15 to a high of $91.00. Of the 14 Wall Street analysts that rated RUN, 11 rated it Buy, one rated it Hold, while two rated it Sell.

Sunnova Energy International Inc. (NOVA)

NOVA is a leading provider of residential solar and energy storage services in the U.S. The Houston, Tex., company offers operations, maintenance, monitoring, repairs, equipment upgrades, power optimization, and diagnostics services. It has a generation capacity of more than 790 megawatts and serves approximately 107,000 customers.

On Feb. 1, 2022, NOVA and Generac expanded their strategic partnership to provide new hardware technology with increased resiliency to homeowners through …….


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