Sunday Jan 29, 2023

RUN: 5 Solar Stocks Wall Street Loves: SunRun, SPI Energy, ReneSola, Shoals Technologies, and Sunnova –


The solar sector has acquired significant importance over the past few years as countries worldwide have increasingly emphasized green energy initiatives. Solar accounted for 46% of all new electricity-generating capacity added in the United States last year, marking the third year in a row that solar represented the largest share of new capacity. Although the industry has faced several headwinds due to supply chain issues and cost pressures, its long-term growth prospects look vast. The impact of potential federal clean energy policies under consideration could potentially increase solar deployment by 66% over the next decade.

According to the U.S. Energy Information Administration, 46.1 gigawatts (GW) of new utility-scale electric generating capacity is expected to be added to the U.S. power grid this year, with almost half of the planned additions being solar. Furthermore,  U.S. utility-scale solar generating capacity is expected to grow by 21.5 GW in 2022, surpassing last year’s estimated 15.5 GW of solar capacity additions.

Given the industry’s solid growth prospects, Wall Street analysts see a significant upside potential in solar stocks, Sunrun Inc. (RUN), Sunnova Energy International Inc. (NOVA), Shoals Technologies Group, Inc. (SHLS), ReneSola Ltd (SOL), SPI Energy Co., Ltd. (SPI).

Sunrun Inc. (RUN)

San Francisco’s RUN designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. The company markets and sells its products primarily to residential homeowners through various direct-to-consumer approaches.

In January, RUN announced that it had retired its $250 million recourse lending facility and arranged a $425 million facility at enhanced terms and a longer tenor than its prior term extensions. The new facility expands its borrowing base to support more efficient inventory financing and its growth trajectory.

RUN’s total revenue increased 35.8% from the prior-year quarter to $435.23 million in its fiscal fourth quarter, ended Dec. 31, 2021. Its cash and restricted cash balance stood at $850.43 million, up 20.1% year-over-year. The company added 29,870 customers in the quarter, bringing the total to 660,311. And  its solar energy capacity installed grew 31% in 2021, which exceeded guidance and marked its  highest growth rate in five years at nearly three times the operating scale.

Analysts expect the company’s revenue for its fiscal first quarter, ending March 2022 to come in at $400.74 million, indicating a19.7% year-over-year increase. Furthermore, the consensus EPS estimate for the same quarter indicates 32% year-over-year growth.

RUN’s shares have gained 15.3% in price over the past month to close the last trading session at $28.37.

Among the 17 Wall Street analysts who have rated RUN, 14 rated it Buy, one rated it Hold, and two rated it Sell. The 12-month median price target of $50.13 indicates a 76.7% potential upside. The price targets range from a low of $16.15 to a high of $91.00.

Sunnova Energy International Inc. (NOVA)

NOVA in Houston, Tex., designs, manufactures, and installs residential solar and energy storage systems across the United States. Its services include operations and maintenance, monitoring, repairs and replacements, equipment upgrades, onsite power optimization, and diagnostics. As of Dec. 31, 2021, it served more than  195 million customers with a generation capacity of 1,140 megawatts.

Last month, NOVA launched its standalone Sunnova Repair Services for all homeowners who are not under a solar service warranty. The company’s certified technicians will now be available to troubleshoot, service, and repair solar and battery storage systems even if they were not installed by NOVA, expanding its customer base.

Earlier this month, NOVA announced the expansion of its strategic partnership with Generac Holdings Inc. (…….


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