Energy

Goldman Sachs Adds to Residential Solar Excitement and Upside Ahead

Jon C. Ogg

Published: June 18, 2019 2:02 pm

Last Updated: January 30, 2020 7:33 pm

There has been big news in the world of electric power in recent days. The electric capacity of clean and renewable energy has now surpassed the electric capacity of coal for the first time ever. It may not be by much, but many clean and green consumers and investors alike want to see that gap widen drastically in the years ahead.

Goldman Sachs has been more positive on some solar players of late, and now the investment bank has issued an incrementally positive view for some of the domestic residential solar stocks. The firm is evaluating buying opportunities ahead of the second half when higher volume tailwinds and financing strength are likely to benefit the sector. One such tailwind is the new-homes mandate for 2020 in California.

SunPower Corporation (NASDAQ: SPWR) was raised to buy from neutral with a $11 price target at Goldman Sachs. This was after a $8.28 prior closing price. SunPower was indicated up 6% at $8.78 early on, but was last seen trading up over 20% Tuesday midday at about $10. Another competing analyst call had SunPower as a top pick for 2019, and its target was almost just as aggressive even back then.

SunPower’s prior 52-week range was $4.55 to $8.61; the Refinitiv consensus analyst target price was previously seen at $6.76.

Sunrun Inc. (NASDAQ: RUN) was raised to buy from neutral with a $20 price target at Goldman Sachs. This was versus a $17.09 prior closing price. SunRun was indicated up 4% at $17.85 early on, but the stock was last seen up 8% at $18.45 in midday trading on Tuesday.

Sunrun had a consensus analyst target price of $20.05 already, and the shares hit a new 52-week high of $18.50 earlier in the session.

SolarEdge Technologies, Inc. (NASDAQ: SEDG) was given the weak analyst upgrade as it was raised to neutral from sell at Goldman Sachs. This was still good enough for a 5.5% gain to $59.72.

SolarEdge has a 52-week range of $32.42 to $60.96 and versus a prior Refinitiv consensus analyst target price of $59.67.

Vivint Solar, Inc. (NASDAQ: VSLR) already had a buy rating at Goldman Sachs, but the firm raised its target to $9. For some related company, Merrill Lynch had even seen over 100% upside for Vivint Solar earlier this year.

Shares of Vivint Solar were last seen trading up 9% at $7.28 on the day. It has a 52-week range of $3.55 to $7.44.

Tuesday’s upgrades combined with a strong market in general added handily to solar and alternative energy exchange-traded funds (ETFs). The Invesco Solar ETF (NYSEArca: was TAN) was last seen trading up 4% at $27.88, and it hit a new 52-week high of $27.93 earlier in the trading day. The Invesco WilderHill Clean Energy ETF (NYSEArca: PBW) was last seen up 3.7% at $29.41 after hitting a new year-high, with a 52-week range of $20.08 to $29.43.