Goldman Sachs Weighs in on Solar Stocks

The analyst remains bullish toward solar's structural growth case in the long-term

Deputy Editor
Jun 21, 2022 at 10:17 AM
facebook X logo linkedin

Sunrun Inc (NASDAQ:RUN) stock is the best investment for those looking to to capitalize on residential solar growth in the U.S., according to Goldman Sachs. While the brokerage firm lowered its price target on RUN to $36 from $40, it's maintaining a "buy" rating, with a long-term bullish attitude toward the sector's structural growth case. Meanwhile, the analyst downgraded the company's rival SunPower Corporation (NASDAQ:SPWR) to "sell" from "neutral," and lowered its price objective to $13, implying a 25% downside for SPWR due to speculations of softening consumer demand amid higher inflation.

In response to the upgrade, Sunrun stock was last seen 2.8% higher to trade at $24.49. The equity is recovering from a mid-May, post-earnings dip to a roughly two-year low below the $17 area. Today's pop could help RUN overcome the 60-day moving average once again, and chip away at its 30.5% year-to-datse deficit.

Looking at analyst sentiment coming into today, the brokerage bunch was overwhelmingly bullish on Sunrun stock. In fact, of the 11 in coverage, 10 rated it a "buy" or better, without a single "sell" on the books. Meanwhile, the 12-month consensus price target of $47.99 was a significant 96.7% premium to Friday's close.

Regarding SunPower stock, the security was trading at $17.48 at last check, down 2.5%. Today's negative price action puts the equity back below the 20-day moving average, which it notched a close above on Friday. Ahead of today's losses, SPWR was down 14.1% in 2022.

Analysts were already pessimistic toward SunPower stock before today's bear note. Of the 12 in coverage, just two called it a "buy" or "strong buy," compared to nine "hold" ratings and one "strong sell." SPWR's12-month consensus price target of $19.93, meanwhile, was an 11.2% premium to Friday's close. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI