Enphase Energy leads S&P 500 as Deutsche Bank names top solar stock
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Enphase Energy (NASDAQ:ENPH) is Thursday's top gainer on the S&P 500, +5%, as Deutsche Bank taps the stock as its top pick among solar stocks, initiating a Short-Term Catalyst Buy rating ahead of Q1 results.
Enphase (ENPH) also is Deutsche Bank's top long-term buy idea, with a $280 price target, and the bank is "bullish on the company's market positioning with growth opportunities in the European market," analyst Corinne Blanchard wrote.
The stock's valuation is attractive, with the most potential upside in its coverage universe, Blanchard said.
The analyst said she expects "constructive guidance" for Q2 from Enphase (ENPH) and SolarEdge Technologies (SEDG); the latter stock +4.3% in Thursday's trading.
First Solar (NASDAQ:FSLR) was downgraded to Hold from Buy with a $230 PT, as Blanchard believes investors can find better risk/reward elsewhere after the stock's 45% rally since early November.
The analyst said she remains positive on First Solar (FSLR), acknowledging the strong backlog and improving ASP profile, but she sees the stock as fairly valued.
Blanchard also maintained Buy recommendations on Sunnova (NOVA) and Sunrun (RUN), and retained a Hold rating on SunPower (SPWR) but initiated a Short-Term Catalyst Sell, anticipating disappointing Q1 results.
Enphase Energy (ENPH) "still looks elevated relative to its clean energy peers and the institutional cohort is yet to turn constructive," The Alpha Sieve writes in an analysis newly published on Seeking Alpha.