After another disappointing start to the year, clean energy stocks recently showed signs of boom thanks to the unveiling of the European Union’s multibillion-euro plan for Reducing dependence on Russian fossil fuels.
According to the new RepowerEU . Planthe European Commission has set a target of having half of the EU’s energy come from renewable sources by 2030 – more than effectively double current levels, with total costs to be offset by €84 billion in annual savings on imported fuel. RepowerEU says full implementation of its proposals would reduce gas consumption by 30% by 2030.
The European Commission suggestedEnter a commitment to have rooftop solar installations for all new buildings and all existing buildings of Energy Performance Class D and above [the most energy-intensive]. “The European Commission aims to accelerate the construction of wind farms and solar arrays by forcing member states to designate ‘transition to’ areas with low environmental standards and processes for fast-track approvals.
Unlike their fossil fuel peers, clean energy stocks have had another hot year with the popular benchmark for the sector iShares S&P Global Clean Energy Index ETF (NASDAQ:ICLN) is down 5.6% year-to-date, mainly due to inflation pressures, supply chain disruptions and the resurgence of COVID-19. However, a cross section of Wall Street analysts advise investors that the current market turmoil is an ideal opportunity to buy energy stocks. Clean at competitive prices.
Here are some of the top picks by the experts.
Market value: $2.4 billion
Returns to date: -28.8%
Based in Houston, Texas, Sunnova Energy International Inc. (NYSE: NOVA) provides residential energy services in the United States. The company provides electrical, as well as operations and maintenance, monitoring, repairs and replacements, equipment upgrades, on-site energy optimization, and diagnostic services.
As of December 31, 2021, NOVA has operated a fleet of residential solar systems with a generation capacity of approximately 1,140 MW serving more than 195,000 customers.
After a disastrous start to the year, NOVA shares are up nearly 21% over the past five trading sessions after Northland triggered an outperformance rating on the stock along with a $30 price target on NOVA, implying a potential 46.6% upside over last. arrow closed.
According to Northland, NOVA’s current quotationscompelling entry point“For investors looking for exposure to the residential solar market due to Sunnova’s point of view”A well-equipped sales-based business model with very strong and reliable cash flow. “
Market value: $5.6 billion
Returns to date: -25.5%
Sunrun . Company (NASDAQ: RUN) is a San Francisco, California, solar powered company that designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. Sunrun also sells solar energy systems and products, such as panels and racks; It leads to solar power generation for customers. In addition, the company offers battery storage along with solar energy systems. Its primary clients are residential home owners.
RUN stock has jumped 50% over the past three weeks after the company reported a… Q1 GAAP loss But revenue is better than expected, with customer orders jumping 39% and installed capacity improving 27% compared to the same period last year.
Sunrun also raised full-year guidance, saying it expects growth of 25% or more in installed solar capacity versus a previous forecast of 20% growth. The largest residential solar installer in the United States said it added 29,463 customers during the first quarter, up 20% year-over-year, bringing the company’s total customer count to nearly 690,000.
Market value: $7.7 billion
Returns to date: -18.7%
The headquarters is located in Tempe, Arizona, First Solar Company (NASDAQ: FSLR) provides solar PV solutions in the United States, Japan, France, Canada, India, Australia and internationally. The company designs, manufactures and sells cadmium telluride solar modules that convert sunlight into electricity.
Like their solar counterparts, FSLR stocks have been on the move after Piper Sandler Stock upgrade to gain weight It is neutral with a price target of $90, which means a 25% increase to the current price, saying that the momentum of recent bookings provides strong volume and price visibility into 2024.
Analyst Piper Kashi Harrison sees 2022 asGeneral margin with potential for improvement [cost of goods sold] With the normalization of logistics, new contractual structures for risk margins emerge in 2023-24, and start-up expenses associated with building the facility subside.”
Harrison says First Solar’s revenue could grow from $2.4 billion in 2022 to $4.3 billion in 2024, and EBITDA could rise from $100 million in 2022 to $1.2 billion in 2024.
First Solar will obviously benefit from a US Department of Commerce investigation into solar panel imports, but Harrison says its upgrade is not an invitation to the tariff outcome, as the company’s.It could have pricing/volume visibility through most of 2025 by the time the initial tariff is announced in August.”
Several solar stocks have been sold off in recent weeks in response to a US government investigation into imports of solar panels. In fact, on her latest earnings call, NextEra Energy (NYSE: NEE) warned that up to 2.8 gigawatts of solar energy and storage projects will be postponed At least a year ago due to the US Department of Commerce’s investigation into imports of solar panels.
“If the Department of Commerce finds fraud, we believe it will terminate a decade of business practices. We are disappointed by the Commerce’s decision to conduct this investigation,” NEE Chief Financial Officer Kirk Cruz told Bloomberg.
The government has until August 30 to release preliminary results, but with some companies reporting solar panel cancellations or delays, so does the industry. Asking for a faster decision.
Market value: $11.0 billion
Returns to date: -33.8%
One of the most famous hydrogen companies, Plug Power Company (NASDAQ:PLUG) provides turnkey hydrogen fuel cell solutions for the mobility, material handling, and stationary energy markets in the North American and internationally. Plug Power’s fuel cell solutions meet the needs of clean, renewable energy.
In its latest earnings call, Plug Power stated that Sales nearly doubled in the first quarter, but the higher costs led to a greater loss. Plug Power reported first-quarter revenue of $140.8 million (+95.7% year-over-year) and GAAP EPS of $0.27, with both measures not matching the Wall Street consensus.
However, some Wall Street experts see the massive selloff as a buying opportunity. According to HC Wainwright’s Amit Dayal, the decline in PLUG shares is a blessing in disguise, with the analyst saying the company’s business is likely to improve in the coming years and the stock to rise as well. Dayal is evaluating a buy stock with a target price of $78, which is good for a massive 309% rally.
Dayal notes that Plug Power is expanding its business globally, and predicts that 25% of the company’s estimated $909 million in revenue in 2022 will come from international markets. Higher natural gas prices pressured Plug Power’s fuel margins, but it still managed to expand its service margins nonetheless.
“We believe the stock should get a better rating from the market on execution evidence versus margin improvements and global growth,Dial says.
Market value: $27.9 billion
Yields to date: -69.9%
San Jose, California Rivian Cars (NASDAQ:RIVN) is a new electric vehicle manufacturer that designs, develops, manufactures and sells automobiles and electrical accessories. The company offers five-passenger pickups and SUVs, the R1T pickup truck, the R1S SUV and EDV pickup truck.
With shares of RIVN down nearly 70% year-to-date, some investors may consider buying it an attempt to catch a fallen knife. Selling pressure on RVN continued to be more positive Reviews The R1T model has been published by auto industry watchers. However, Mizuho’s Vijay Rakesh urges a contradictory approach and advised investors to buy the dip. Rakesh is evaluating the stock as a buy with a target price of $80, which means a gain of about 160%.
In a recent report, the analyst highlighted that Rivian’s business actually looks better than many investors might realize.
Rivian aims to produce 25,000 vehicles in 2022, which is a significant increase in production compared to the 2,553 vehicles produced in the first quarter of 2022. The company is already adding manufacturing capacity to meet the production target amid strong demand for its vehicles. Rivian has now received more than 90,000 pre-orders for its trucks and SUVs, compared to about 83,000 pre-orders in the previous update.
The automaker recently raised the price of the R1T to $79,500 and introduced a newer, cheaper version at $67,500 with fewer features and only two electric motors instead of four, which is a good sign of pricing power.
By Alex Kimani for Oilprice.com
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