Goldman Sachs Still Likes Solar Stocks Despite SunPower Collapse Fears: Upgrades ENPH, CSIQ
Portfolio Pulse from Neil Dennis
Goldman Sachs downgraded SunPower Corp (SPWR) to Sell with a price target of $4 due to doubts about its ability to continue operations, causing its shares to drop 35%. Despite this, Goldman Sachs remains positive on the solar sector, upgrading Sunnova Energy (NOVA) to Buy and Canadian Solar (CSIQ) to Neutral. Enphase Energy (ENPH) retains a Buy rating with a significant upside potential, while SolarEdge Technologies (SEDG) was downgraded to Sell. Sunrun (RUN) and First Solar (FSLR) maintained their Buy ratings, but their shares fell. The Invesco Solar ETF (TAN) is down around 35% this year.
December 18, 2023 | 8:33 pm
News sentiment analysis
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NEGATIVE IMPACT
SolarEdge Technologies was downgraded to Sell by Goldman Sachs due to EU solar market risks, shares fell 3.4%.
The downgrade to Sell by Goldman Sachs due to EU market risks and the drop in share price indicate a negative short-term impact for SolarEdge Technologies.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
SunPower downgraded to Sell by Goldman Sachs with a price target of $4, shares dropped 35% due to substantial doubts about its ability to continue.
The downgrade by Goldman Sachs and the warning issued by SunPower about its ability to continue operations have led to a significant drop in its share price, indicating a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The Invesco Solar ETF (TAN) is down around 35% this year, with valuations still below market price.
The overall decline in the solar sector as reflected by TAN's performance suggests a negative short-term impact, although Goldman Sachs sees upside potential in the sector.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
First Solar kept its Buy rating from Goldman Sachs, yet shares slid 1.7%.
Despite the Buy rating from Goldman Sachs, the slight decline in First Solar's share price suggests a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Sunrun maintained a Buy rating from Goldman Sachs but shares lost 3.8%.
While Goldman Sachs retains a Buy rating on Sunrun, the share price fell, indicating a neutral short-term impact as market sentiment may not align with the analyst's rating.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Canadian Solar's rating was raised from Sell to Neutral by Goldman Sachs, and shares rose 2%.
The upgrade to Neutral by Goldman Sachs and the subsequent rise in share price indicate a positive short-term impact for Canadian Solar.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Enphase Energy maintained a Buy rating from Goldman Sachs with a 58% potential upside to its $158 price target, shares up 0.6%.
Goldman Sachs' continued Buy rating and the potential upside suggest a positive short-term impact on Enphase Energy's share price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Goldman Sachs upgraded Sunnova Energy to Buy with a 65% potential upside to its $17 price target, but shares fell 3.1%.
The upgrade by Goldman Sachs suggests a positive outlook for NOVA, but the short-term impact was negative as shares fell. The long-term potential upside may eventually reflect in the share price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80