Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Energy stocks have come under pressure as global commodity market swings collide with intensifying geopolitical and regulatory headwinds. In recent weeks, crude oil and natural gas prices have seesawed in response to conflicting signals from OPEC+ production strategies, weakening Chinese demand, and emerging policy shifts in the U.S. and
Enphase Energy Inc (NASDAQ:ENPH) shares are tumbling Wednesday after the company reported second-quarter results and issued guidance with a midpoint below estimates.
Shares of solar power systems company SolarEdge (NASDAQ:SEDG)
fell 7.8% in the morning session after analysts at JPMorgan downgraded the stock. The investment bank lowered its rating on the solar technology company to "Neutral" from a previous "Overweight" rating. JPMorgan cited the stock's significant outperformance since May as the primary reason for the downgrade, with shares having rallied substantially more than the average for stocks in its coverage universe. While the bank acknowledged encouraging initial progress from SolarEdge's new management team on efficiency and product rationalization, it noted that it is still early in the process. Despite the downgrade, JPMorgan did raise its price target on the stock to $23 from $18, reflecting higher future estimates and an increased valuation multiple.
Shares of solar power systems company SolarEdge (NASDAQ:SEDG)
jumped 4.3% in the morning session after analysts at Barclays upgraded the stock and more than doubled their price target on the stock.
Rapid spending isn’t always a sign of progress.
Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
The past six months have been a windfall for SolarEdge’s shareholders. The company’s stock price has jumped 90.6%, hitting $27.56 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at SolarEdge (NASDAQ:SEDG) and its peers.
Shares of solar power systems company SolarEdge (NASDAQ:SEDG)
fell 6.2% in the afternoon session after markets reacted to news that a new domestic policy bill will end key subsidies for the clean energy sector and could raise costs for solar imports from Asia. The potential end to key subsidies and the threat of increased tariffs on solar components imported from Asia are casting a shadow over the company's future profitability. This development adds to the headwinds faced by the solar industry, which has been grappling with volatile market conditions and high inventory levels at distributors.
Trump's bill pressures renewable energy stocks but KeyBanc says upgrades for Sunrun and SolarEdge are 'better than feared.' Analyst sees stable near-term outlook for Sunrun and SolarEdge amid changes to tax credits.
