Clean energy stocks are facing an uncertain future, but according to one Wall Street analyst, they are still buys. Kashy Harrison of Piper Sandler (PIPR) recently assigned Buy ratings to three companies in the clean energy space, two of which deal primarily in solar technology. Donald Trump’s incoming presidency has cast doubt on the sector’s future, as his administration is likely to implement policies that favor fossil fuel production at the expense of alternative energy. But Harrison sees room to run for multiple clean energy stocks, despite questionable economic conditions.
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Clean Energy Stocks that Piper Sandler Likes
Yesterday, Harrison assigned Buy ratings to First Solar (FSLR), Generac Holdings (GNRC), and NEXtracker (NXT). While First Solar and NEXtracker mostly offer investors exposure to the solar tech market, Generac provides power solutions, including solar and battery storage systems. All three stocks are in the green today and have performed well over the past week. However, only Generac has displayed growth over the past quarter, rising 19% despite difficult market conditions.
That’s likely why Harrison is more bullish on GNRC than FSLR or NXT. He recently raised his price target on Generac from $190 to $200, noting that he sees a “low probability of a ‘hard landing’ on the Inflation Reduction Act as it pertains to power supply or manufacturing credits.” This suggests that he views it as a better bet than other clean energy stocks, as the impact of Trump’s policies is likely to be minimal.
Harrison isn’t as bullish on either solar stock, having recently trimmed his price targets for both, although he maintains Buy ratings for all three. That said, his current GNRC price target of $200 implies 7% upside potential, while his targets for FSLR and NXT imply upside potential of 13% and 22%, respectively.
Is Generac Stock a Buy, Sell or Hold?
Overall, Wall Street remains sidelined on Generac, despite Harrison’s bullish take. Analysts have a Moderate Buy consensus rating on GNRC stock based on six Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Even after a 65% rally in its share price over the past year, the average GNRC price target of $177.85 per share still implies 5% downside potential.
