NOVA - FTC Solar raised Sunrun and Sunnova cut at Piper with focus on earnings resilience

FTC Solar ( FTCI ) +11.2% in Tuesday's trading after Piper Sandler upgraded shares to Neutral from Underweight with a $3.50 price target, up from $2, saying President Biden's executive order in June announcing a waiver on tariffs from Asian countries over the next 24 months "takes the worst case scenarios off the table."

Piper's Kashy Harrison said FTC Solar ( FTCI ) was disproportionately impacted by the AD/CVD investigation relative to peers and should meaningfully benefit as the investigation has closed; the company also has obtained some temporary covenant relief from its lenders.

At the same time, Harrison downgraded Sunrun ( RUN ) and Sunnova ( NOVA ) to Neutral from Overweight, citing reduced confidence in their cash trajectory and lack of catalysts to boost stocks within a risk-off environment, and noting that the resilience of the sector to recession likely will come into focus heading into Q2 earnings.

With President Biden's Build Back Better now twice deceased, investor focus on renewables will return to evaluating stocks under a "recessionary lens," Harrison said.

The analyst named First Solar ( FSLR ), Enphase Energy ( ENPH ) and SolarEdge ( SEDG ) as preferred names in the solar sector, citing balance sheet strength and potential for favorable long-term earnings revisions.

Solar stocks fell sharply last week after Senator Joe Manchin told Democratic leaders he would not support an economic package that includes tax increases or new spending on climate measures .

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