The solar sector is shining – with things about to get a bit brighter.
All thanks to hopes New Jersey Congresswoman Mikie Sherrill and Georgia Senator Jon Ossoff, can “expand the solar tax credit for residential consumers and small businesses to include entire roofing systems that integrate solar power technology,” as noted by Reuters.
At the moment, the current 26% tax credit covers solar roof tiles, but no other parts of the roof, which is seen as an obstacle for industry growth.
“If we want to take meaningful action towards addressing the climate crisis, the future must be powered by clean energy. Solar energy is a great alternative that needs to be made more accessible to more Americans. The RAISE the Roof Act does just that.” said Rep. Sherrill. “Clarifying and expanding the ITC to include new integrated solar roofing technology will make solar adoption easier and more available to more American families.”
“There is a unique opportunity in front of us to grow our clean energy sector, create jobs here at home, and make it easier for consumers to access renewables like solar — all while fueling our recovery from the economic crisis caused by the pandemic. We’ve already seen the incredible impact the solar ITC has had on our clean energy economy since it was implemented 15 years ago. This legislation will only bolster that growth and incentivize the expansion of the clean energy sector, here in New Jersey and across the country.”
If things go as planned, some of the top solar stocks to consider include:
First Solar (FSLR)
Plenty of analysts are bullish on FSLR. Cowen analysts just raised their price target on the stock to $105 from $104. “We are upbeat about First Solar’s plans to expand capacity in India and Ohio at capex per watt of $0.20/w vs $0.30/w prior. 3.3 GW are planned at both India and Ohio plants and capacity is expected to double to 16 GW by 2024. 9 GW of bookings in the first 7 months are the highest vs. any other year, though freight & shipping costs remain a pain point and will pressure margins through ’21,” they said, as quoted by Street Insider.
Piper Sandler just raised its target to $89 on FSLR. Even Guggenheim just initiated a buy rating on the stock with a price target of $13.
SolarEdge Technologies (SEDG)
At nearly $300, SEDG is a solid opportunity, as well. For one, the company just blew earnings out of the water. SolarEdge reported second quarter earnings of $1.28 and revenue of $480.1M, both better than the expected $1.12 and $454.69M, respectively. Additionally, the company reported 1.64 Gigawatts of inverters shipped. For the third quarter, SolarEdge sees revenue between $520M-$540M, with consensus at $504.68M, and non-GAAP gross margin within the range of 32% to 34%.
Also, Citi just upgraded the stock to a buy rating with a $360 price target. Canaccord Genuity raised its target to $280. UBS raised its target to $230. Truist raised its target to $340.
Sunrun Inc. (RUN)
RUN is up to $53.60 and exploding, too. JP Morgan just raised its target price on RUN to $86 from $81. According to TheFly.com, “Heading into the Q2 prints, alternative energy investor focus will likely remain on supply chain disruptions near-term, potentially creating volatility in the stocks that could present attractive buying opportunities, Strouse tells investors in a research note. The analyst says that with an average trading multiple below the one-year average, he remains positive on the stocks heading into the results.”
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