Simple, cash-rich and low leverage is what works for clean tech firms - BofA

TPI Composites

12/05/2023 17:05

** "At the start of 2Q23, we like simple stories, continued
rate of change and structural tailwinds" - BofA
    ** Picks Nextracker Inc  NXT.O , FTC Solar Inc  FTCI.O , TPI
Composites Inc  TPIC.O  and SolarEdge Technologies Inc  SEDG.O 
as its top picks
    ** Says NXT's clean balance sheet, line of sight from fully
contracted backlog and return to "normalized" margins check all
the boxes
    ** For FTC Solar, the brokerage models a flip to positive
adj. EBITDA in Q3 while for TPI Composites it sees data points
on wind recovery compounding
    ** Says SolarEdge leads as the best supply chain recovery
and European play with operating margin upside still
underappreciated in 2H
    ** The brokerage sees "significant value upside" for
residential solar installers  RUN.O  and  NOVA.N 
    ** Says every indicator on competitive trends suggests their
businesses will gain share in 2023 against an ongoing loan to
lease shift in resi-solar
    ** Adds that SunPower Corp  SPWR.O , Bloom Energy Corp  BE ,
EVgo Inc  EVGO.O  and RUN all had significant cash burn in Q1
and all underperformed

 (Reporting by Arshreet Singh)
 ((Twitter: https://twitter.com/arshreets))