Mizuho remains upbeat on prospects for solar firms

Enlight Renewable Energy

21/11/2023 14:16

** Brokerage Mizuho remains upbeat on long-term outlook for
solar firms and says stocks have “attractive valuation” with
short-term demand slowdown and inventory destocking are already
priced in
    ** Initiates coverage of Enphase  ENPH.O , First Solar
 FSLR.O , SolarEdge  SEDG.O  and Sunnova  NOVA.N  with rating of
"Buy"
    ** Mizuho sees Enphase as a market leader in the U.S.
residential solar sector, and will maintain its market share due
to limited competition
    ** Brokerage also expects co's international revenues to
increase ~38% by 2025
    ** First Solar has a high degree of immunity to price
pressure on take-or-pay contracts that limit downside if module
prices fall - Mizuho
    ** SEDG has a diversified presence in international and
commercial markets which will help it to take advantage of
market opportunities and a growing battery storage business,
says brokerage
    ** Mizuho says Sunnova has been growing faster than the
market growth rate since it's IPO in 2019 on demand for their
lease offerings/power purchase agreement offering
    
 Company                   Rating      Price
                                       Target
 Enphase Energy            Buy         $131
 First Solar               Buy         $188
 SolarEdge                 Buy         $108
 Sunrun                    Buy         $23
 Sunnova                   Buy         $20
 Maxeon Solar              Neutral     $7
 SunPower                  Neutral     $5
 Enlight Renewable Energy  Neutral     $17
 
 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))