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Enphase Energy (NASDAQ:ENPH) +1.7% in Monday’s trading as Wells Fargo upgraded the stock to Overweight from Equal Weight, while SunPower (SPWR) -2.2% after getting downgraded to Underweight from Equal Weight, part of a flurry of rating changes from the bank, which prefers residential to utility scale solar given greater rate sensitivity.
Wells Fargo analyst Michael Blum raised Enphase (ENPH) on an expected rebound in U.S. residential solar, and SunPower (SPWR) was cut to reflect liquidity related headwinds.
Blum also cut First Solar (FSLR) to Equal Weight due to a strong 2023 performance, the relatively defensive nature of cash flows that are less levered to rates and long-term potential ASP headwinds, and also lowers Array Technologies (ARRY) to Equal Weight on near-term market share losses, while upgrading Nextracker (NXT) to Overweight to reflect market share gains and backlog.
Blum offered a generally positive outlook on solar, which he expects will rebound in 2024 driven by Fed easing, higher battery attach rates, clarity on the Inflation Reduction Act, and steady utility scale demand growth; his top solar stocks are Enphase (ENPH) and Sunrun (RUN).
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Source: seekingalpha.com
