This Wall Street Firm Bets Big on These 3 Solar Stocks

By Chris Lange Published May 2, 11:08AM EDT

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This Wall Street Firm Bets Big on These 3 Solar Stocks — © RuslanDashinsky / E+ via Getty Images

Energy prices have been on the rise this year. Russia has put the clamps on Europe, and countries, companies and consumers are looking for alternatives. While everyone is looking to figure out the oil and gas markets, one Wall Street player is looking at something entirely different.

Truist issued a few calls on Monday morning focused on solar stocks. Each of these calls shows upside of at least 10%, and there could be a lot more.

Though headwinds have put a damper on the markets in general, Truist believes that a few of these stocks could provide solid upside for now. This industry was hurt by the spread of the coronavirus and could stand to benefit from a strong summer season, as pandemic concerns appear to have abated.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

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SunPower Corp. (NASDAQ: SPWR) is a solar services provider that offers solar, storage and home energy solutions primarily in the United States and Canada. The firm operates anywhere from residential all the way up to industrial. Truist resumed coverage with a Hold rating, but its $18 price target implies upside of 9% from the most recent closing price of $16.51.

SunPower stock has a 52-week trading range of $14.00 to $34.61, and it traded near $17 on Monday. Shares are down about 21% year to date.

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SolarEdge Technologies Inc. (NASDAQ: SEDG | SEDG Price Prediction) operates through five segments: Solar, Energy Storage, e-Mobility, Critical Power and Automation Machines. The company offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial and small utility-scale solar installations. The company is headquartered in Israel. Truist resumed coverage with a Buy rating and a $340 price target, which implies upside of 36% from the most recent close at $250.41.

The stock was trading at around $253 on Monday, in a 52-week trading range of $199.33 to $389.71. SolarEdge stock is down nearly 11% year to date.

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Sunnova Energy International Inc. (NYSE: NOVA) is another solar company, but its primary focus is on residential services within the United States. At the end of 2021, the firm operated a fleet of residential solar energy systems with a generation capacity of approximately 1,140 megawatts serving over 195,000 customers. Truist resumed coverage with a Buy rating and a $32 price target, implying upside of 85% from the most recent closing price of $17.27.

The stock traded at around $17 on Monday, and it has a 52-week trading range of $13.90 to $46.40. Sunnova stock is down 38% year to date.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.