SHLS - SunPower Shoals Technologies gain after Goldman upgrades

2023-03-30 12:31:13 ET

SunPower ( NASDAQ: SPWR ) +2.7% and Shoals Technologies ( SHLS ) +4.1% in Thursday's trading as Goldman Sachs upgraded both stocks to Neutral from Sell, with respective price targets of $13 and $22, on valuation after recent declines.

Goldman said its previous Sell thesis on SunPower ( SPWR ) was based on demand concerns related to the company's heavy mix of new homes and cash/loan sales in the backdrop of a tougher consumer spending environment, while its Sell rating on Shoals ( SHLS ) focused on downside risks to consensus earnings and revenue expectations.

While the risks remain largely unchanged, Goldman notes consensus expectations and valuation for both stocks have dropped, allowing for a more balanced risk-reward profile that warrants a more neutral outlook.

Solar and renewable energy stocks are showing broad gains after the European Union parliament reached a preliminary deal to boost the share of renewable energy in the bloc .

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