雅虎香港財經 12 Most Promising Solar Stocks According to Analysts
In this article, we will take a look at the 12 most promising tech stocks according to analysts. To see more such companies, go directly to 5 Most Promising Tech Stocks According to Analysts.
As the world continues to grapple with soaring energy costs, supply chain issues and existential climate change problems, all eyes are on the renewable energy sector that continues to gain traction amid increasing demand and long-term growth catalysts. And it seems significant progress is being made in the industry. In 2022, for the first time in history, renewable energy investments were equal to global investments in fossil fuels, according to a report from BloombergNEF. Annual investment in renewable energy, electrified transport and heat, energy storage related technologies totaled $1.1 trillion in the period. The Bloomberg report said that investments in wind, solar and electric vehicles accounted for the biggest chunk of this huge growth.
The Russian invasion of Ukraine and its effects on the energy markets hastened the green energy revolution, at least in Europe. A report from IEA says that wind and solar PV have the potential to cut the EU’s reliance on Russian energy by 2023. The report said that annual renewable capacity additions broke a new record in 2021, increasing 6% to almost 295 GW.
Supply-chain woes faced by almost every industry in 2022 also affected the renewable energy sector. The IEA report said that solar PV and wind costs were expected to remain higher in 2022 and 2023 due to freight and commodity costs. However, record prices of natural gas and oil continue to make solar and wind energy prices look attractive on a comparative basis.
Another long-term growth catalyst for the solar energy sector is the Inflation Reduction Act, which includes huge tax credits for the solar and wind industry.
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Our Methodology
For this article we listed down several notable solar energy stocks and sourced their average analyst price targets based on data from the Wall Street Journal. We then picked 12 of these solar stocks that present the most upside potential from their current prices based on average analyst price estimates.
Most Promising Solar Stocks According to Analysts
12. Emeren Group Ltd (NYSE:SOL)
Average Analyst Price Target: $10.13
Emeren Group Ltd (NYSE:SOL), previously ReneSola Ltd., is a Connecticut-based solar energy company. Emeren Group Ltd (NYSE:SOL) is one of the affordable options in the solar space which can be suitable for investors with low budget. Emeren Group Ltd (NYSE:SOL)’s price target based on the average of analyst ratings is $10.13, as of February 13, according to Wall Street Journal.
On a YTD basis Emeren Group Ltd (NYSE:SOL) has gained about 8.7% through February 13. In December, Emeren Group Ltd (NYSE:SOL) posted its third quarter results. Adjusted EPS in the quarter came in at $0.05, beating estimates by $0.04. Revenue in the quarter jumped a whopping 86% to come in at $28.89 million, beating estimates by $6.33 million. Gross profit in the quarter was $8.5 million.
11. SunPower Corporation (NASDAQ:SPWR)
Average Analyst Price Target: $20.39
SunPower Corporation (NASDAQ:SPWR) ranks 11th in our list of the most promising solar stocks to buy according to analysts. SunPower Corporation (NASDAQ:SPWR)’s average price target according to Wall Street analysts is $20.39, as of February 13. However, SunPower Corporation (NASDAQ:SPWR) fell in January after Barclays downgraded the stock on the back of its expectations that residential solar demand will slow down in 2023. Barclays’ analysts cut the stock’s rating to Underweight from Equal Weight with an $18 price target, down from the previous price target of $26.
In January, Deutsche Bank analyst Corinne Blanchard increased the price target of SunPower Corporation (NASDAQ:SPWR) to $21 from $16 and kept a Hold rating on the stock. The analyst highlighted growing demand in Europe, Inflation Reduction Act, storage growth, adoption, and the supply chain environment in his note.
10. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Average Analyst Price Target: $31.79
Shoals Technologies Group, Inc. (NASDAQ:SHLS) sells electrical balance of system (EBOS) solutions for the solar energy industry. Shoals Technologies Group, Inc. (NASDAQ:SHLS) has gained a whopping 85% over the past 12 months through February 13. Still, analysts believe it has further upside potential.
In November, Shoals Technologies Group, Inc. (NASDAQ:SHLS)’s CEO decided to step down, citing health reasons.
In the third quarter, Shoals’ revenue saw a rise of 52% on a YoY basis. For the full year, Shoals Technologies Group, Inc. (NASDAQ:SHLS) said it was expecting revenue between $310 million to $325 million, up from prior guidance of $300 million to $325 million. Adjusted EBITDA range was given at $80 million-$86 million, compared with the previous guidance of $77 million - $86 million.
ClearBridge Investments made the following comment about Shoals Technologies Group, Inc. (NASDAQ:SHLS) in its Q3 2022 investor letter:
“Shoals Technologies Group, Inc. (NASDAQ:SHLS) manufactures electrical balance of systems (EBOS) components for ground-mounted solar projects and has been gaining market share for quality of service and price. Shoals is also starting to develop an EV charging infrastructure business. We previously owned Shoals and sold our position earlier this year as supply chain issues were negatively affecting margins. Improving supply chain dynamics should support the stock, and tax credits for clean energy production and investment in the IRA should further act as a tailwind for Shoals.”
9. Sunnova Energy International Inc. (NYSE:NOVA)
Average Analyst Price Target: $35.77
Sunnova Energy International Inc. (NYSE:NOVA) ranks 9th in our list of the most promising solar stocks to buy according to analysts. Sunnova Energy International Inc. (NYSE:NOVA) has been under pressure over the past few months amid the company’s high cash burn rate and growth concerns. However, Wall Street analysts’ average price target for the stock is $35.77.
For the third quarter, Sunnova Energy International Inc. (NYSE:NOVA)’s GAAP EPS in the period came in at -$0.54, missing estimates by $0.28. Revenue in the period jumped 117% to total $149.36 million, beating estimates by $16.43 million. Sunnova Energy International Inc. (NYSE:NOVA) said that it added 21,800 customers in the third quarter of 2022. Sunnova Energy International Inc. (NYSE:NOVA) said that it expects growth to increase in 2023 as demand for cheaper and reliable energy services increases.
For the full-year 2022, Sunnova Energy International Inc. (NYSE:NOVA) continues to expect Adjusted EBITDA between $117 million and $137 million.
As of the end of the third quarter of 2022, 25 hedge funds out of the 920 funds tracked by Insider Monkey had stakes in Sunnova Energy International Inc. (NYSE:NOVA). The biggest stakeholder of Sunnova Energy International Inc. (NYSE:NOVA) during this period was Louis Bacon’s Moore Global Investments which has a $61 million stake in the company.
Here is what ClearBridge Investments Small Cap Strategy has to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q3 2022 investor letter:
“Within the utilities sector, solar power and energy storage company Sunnova (NYSE:NOVA) saw its share price benefit from passage of the Inflation Reduction Act legislation, which includes an array of new and extended tax credits that should not only support but enhance the company’s long-term growth prospects.”
8. Brookfield Renewable Partners L.P. (NYSE:BEP)
Average Analyst Price Target: $37.43
Brookfield Renewable Partners L.P. (NYSE:BEP) is notable renewable energy company. Over the past year, Brookfield Renewable Partners L.P. (NYSE:BEP) has lost about 20% in value through February 13 but Wall Street analysts’ average price target of $37.43 shows that the stock has a lot of room to run. As of the end of the third quarter of 2022, 19 hedge funds had stakes in Brookfield Renewable Partners L.P. (NYSE:BEP), out of the 920 hedge funds tracked by Insider Monkey. The total worth of these stakes was $161 million.
7. Sunrun Inc. (NASDAQ:RUN)
Average Analyst Price Target: $44
California-based Sunrun (NASDAQ:RUN) makes photovoltaic systems and battery energy storage products. On average, analysts believe Sunrun (NASDAQ:RUN) could hit $44 price. As of the end of the third quarter of 2022, 47 hedge funds in Insider Monkey’s database of 920 hedge funds reported owning stakes in Sunrun (NASDAQ:RUN). This was significantly up from 36 funds with stakes in Sunrun (NASDAQ:RUN) at the end of the second quarter. This shows that hedge fund sentiment around Sunrun (NASDAQ:RUN) is strong.
In January, Reuters reported that Sunrun (NASDAQ:RUN) was partnering with Lunar Energy Inc. to operate virtual power plants of home solar and storage systems.
6. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Average Analyst Price Target: $45.63
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is a real estate company that focuses on the renewable energy markets. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) looks promising based on the average price target of Wall Street analysts. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is also a dividend payer. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)’s dividend yield stands at over 4% as of February 13. Back in November, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) declared a quarterly dividend of $0.375 per share. The dividend was payable on January 6 to shareholders of record as of December 28. During the same month Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) also posted its third-quarter results. Adjusted EPS for the quarter came in at $0.49, in-line with the estimates. Revenue in the period jumped about 23% to total $60.15 million, beating estimates by $30.54 million.
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Disclosure: None. 12 Most Promising Solar Stocks According to Analysts is originally published on Insider Monkey.
