There could be better-than-expected uptake in residential solar energy — and that can mean good news for some stocks in the space, according to JPMorgan. A new survey from the firm shows promise for residential solar, with "robust" interest bolstering a positive view on the sector in the long term, analyst Mark Strouse said in a note to clients Wednesday. That's welcome news for investors as the industry struggles in the market.
Analysts see major upside ahead, with the average predicted gains suggesting shares can more than double for Sunrun and Sunnova, while Enphase and Solaredge are expected to gain around 60% and 85%, respectively. Around three out of every five homeowners surveyed said they were interested in residential solar, a figure that Strouse described as positive given the relatively miniscule current market penetration.