Evercore ISI analysts see a brighter future ahead for the sector and “attractive entry points” after a prolonged selloff.
A substantial demand reduction in Europe, which the analysts put down to broad macroeconomic conditions, is another part of the puzzle. “These factors have combined to form the perfect storm for the industry throughout the year,” analysts led by James West wrote in a research report. Enphase Energy , Sunnova Energy International , Sunrun , and SunPower are the analysts’ favorite names, and rate all at Outperform. They see Sunrun as having the biggest potential upside, with a price target of $43, implying a 320% gain on Monday’s closing price. West said the company was “quickly adapting” to the current environment by transitioning to a storage-first company, in a note earlier this month.