Enphase Energy, SolarEdge surge as Guggenheim upgrades to Buy
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Enphase Energy (ENPH
+2.3%) and SolarEdge Technologies (SEDG
+5.1%) open with strong gains as Guggenheim upgrades shares to Buy from Neutral, with respective price targets of $213 and $329, seeking to take advantage of more reasonable valuations and investor expectations after sharp stock price declines.

Guggenheim analyst Joseph Osha says that even as challenges remain, "concerns regarding high valuations, high consensus expectations and potential negative news... have largely dissipated."
Osha believes SolarEdge's residential business can propel the stock higher, especially if the company gets its storage offerings on track in 2022.
"It is important to remember that even in a scenario where California policy takes a sharp turn for the worse, the market transition mechanism could actually drive better demand for the near term," according to Osha.
Burned by a range of problems from potential rate hikes to the shaky outlook for subsidies, shares of Enphase, SolarEdge and other solar names have dropped dramatically in recent weeks.