Here are Tuesday’s biggest calls on Wall Street: Wells Fargo upgrades Air Products to overweight from equal weight Wells said it sees robust earnings growth. “We are upgrading APD to OW from EW given its mega project backlog is expected to come on stream over the next several years boosting EPS growth.” JPMorgan reiterates Alphabet as overweight JPMorgan said it’s standing by its overweight rating heading into earnings next week. ” GOOGL has been the quietest of the FANG names in our discussions w/investors recently, perhaps a function of less controversy & very limited forward outlook provided at earnings.” Wells Fargo initiates Toll Brothers, Lennar, PulteGroup and D.R. Horton as overweight Wells said in its initiation of several homebuilders that “volatility presents opportunity.” “We initiate coverage of U.S. Homebuilding & Building Products, with DHI, LEN , MAS, PHM & TOL OW; KBH, FERG & OC EW; and MHK UW. Recent volatility presents opportunity.” Stifel initiates Amazon as buy Stifel said no other platform can come close to Amazon. “Initiating coverage with a Buy rating and $173 target price. No other e-commerce platform comes close to matching the scale that Amazon has amassed.” Read more about this call here. Raymond James initiates Lam Research and Applied Materials as outperform Raymond James Lam and Applied Materials that the valuations appear reasonable for both names. “We view geopolitical factors as a net neutral and expect any additional risk from China export controls to be modest. Valuations do not appear stretched, and a case can also be made for multiple expansion given higher trough earnings.” Loop initiates Microsoft as buy Loop said growth is set to accelerate for Microsoft. “We are initiating coverage of Microsoft with a Buy rating and $425 PT. In our view, MSFT growth is set to accelerate driven by the two most strategic businesses, Azure and GenAI products (M365 Copilot).” JPMorgan upgrades ViaSat to overweight from neutral JPMorgan said it sees an attractive entry point for the satellite company. ” VSAT shares have sold off ~56% since the 5/31 close of the Inmarsat deal vs SPX +~5%, and we believe the sell-off offers an attractive entry point with the stock now trading at 5.4x our FY25 EBITDA.” JPMorgan upgrades CyberArk to overweight from neutral JPMorgan said it sees “accelerating demand” for the cyber company. “We see opportunity for upside in the wake of accelerating demand as CyberArk has some of the most favorable exposure to high priority Security spending within our coverage.” Evercore ISI reiterates Tesla as in line Evercore said Tesla shares will be volatile. “we raise our price target to $180 from $165 on the rollover to ’26. We believe the recent re-rate due to AI/NVDA correlation will be sustained, but TSLA may see increased volatility the next 6 months on 15% EPS risk to ’24/25 resulting in a very wide $140-$265 range.” Evercore ISI upgrades Mobileye to outperform from in line Evercore said it sees a compelling entry point for the auto tech company. ” MBLY currently trades within our $35-45 ‘corridor’ (25-35x ’25 EPS of $1.20- $1.30) but with the rollover to ’26 probability-weighted EPS of $1.85 would be a $45-65 stock.” Goldman Sachs upgrades Dollar Tree buy from neutral Goldman said in its upgrade of the discount retailer that it sees improving earnings growth. “We are upgrading DLTR to Buy from Neutral, as we see strong earnings growth potential supported by continued market share gains from improving traffic trends with sticky new customers, an improving discretionary cash flow outlook for lower and middle income consumers in 2024, and better shopability/in-stocks after recent investments.” Citi upgrades Sunnova to buy from neutral Citi said the solar company’s valuation is compelling. “While we believe NOVA’s 3Q consensus has downside, valuation is too compelling for us to ignore Goldman Sachs initiates TripAdvisor as buy Goldman said it sees upside to estimates for the travel website company. “For TRIP , our view is that the structural growth profile of the business is changing as metasearch gives way to lower funnel businesses that are exposed to secular growth tailwinds and see upside to Street estimates on the back of faster revenue growth at Viator/Experiences & scale/operating efficiencies leading to better profitability.” Bernstein initiates Exxon Mobil as outperform Bernstein said the oil and gas giant is well positioned. “We rate XOM Outperform. We reach our target price of $140/sh by applying a 7.0x multiple to 2025E EBITDA of $73.5B and incorporating additional FCF to shareholders.” Morgan Stanley upgrades Hannon Armstrong Sustainable Infrastructure Capital to overweight from equal weight Morgan Stanley said investors should buy the dip in shares of the climate solutions company. “We believe the sell-off in HASI is overdone and incongruous with business fundamentals. Read more about this call here . Bank of America reiterates Apple as neutral Bank of America said its survey checks show iPhone lead times are picking up for Apple. “Our proprietary interactive dashboard shows that iPhone 15 Pro & Pro Max availability picked up from October 9th to October 15th.” JPMorgan initiates Teck Resources as overweight JPMorgan said the metals and mining company is its preferred play. ” Teck is our preferred copper play given its extensive pipeline of copper projects and likely exit from its carbon intensive coal business, which should drive a meaningful rerating.
Tag: Sunnova Energy International Inc
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California cuts payments to homeowners for solar panels feeding energy back to the grid
Save A Lot Solar contractors install LG Electronics solar panels on a home in Hayward, California, U.S., on Tuesday, Feb. 8, 2022.
David Paul Morris | Bloomberg | Getty Images
The California Public Utilities Commission on Thursday passed a proposal that will reduce compensation provided to households for the surplus electricity their rooftop solar panels contribute to the electric grid.
Utilities and consumer groups have argued the incentive payments have unfairly favored wealthier consumers and harmed poor and low-income households. But solar companies and renewable advocates have said that lowering the compensation would slow solar installations and hinder the state’s goals to address climate change.
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The proposal, which California utility regulators unveiled last month, will change a net metering policy by paying solar owners for extra power at a lower rate, which is determined by the cost the utility would need to spend to purchase clean power from an alternative source. The solar industry has said the plan would amount to a 75% cut in average payment rates to customers.
Today’s unanimous vote by the five-member commission was monitored across the country, since California is widely viewed as a leader in the renewable energy buildout. The impact of today’s decision will likely extend beyond the state and have implications for the solar industry nationwide, particularly companies in the residential solar space like Sunrun, SunPower, Sunnova, and Tesla.
More than 1.5 million homes, businesses and other utility customers in California have rooftop solar panels. The utilities commission estimates that these installations can collectively produce 12 gigawatts of electricity.
The proposal would have no impact on existing rooftop solar customers and would maintain their current compensation rates, and would also encourage consumers to install batteries with their solar panels, the commission said.
Affordable Clean Energy For All, a nonprofit funded by California’s utilities, has argued that the rooftop solar program is outdated and that utilities have to pass along the costs of subsidies, creating higher bills for millions of customers who don’t install solar, including those least able to pay for electricity costs.
However, solar companies have argued that the existing net metering system is necessary to spur people to choose rooftop solar.
The changes to the state’s solar incentive program could cut California’s solar market in half by 2024, according to a report released earlier this year from energy research firm Wood Mackenzie.
“This misguided decision, which undervalues solar’s numerous benefits for all Californians, will dim the lights on the growth of solar in the Golden State,” said Laura Deehan, state director for Environment California, following the vote.
Roger Lin, an attorney at the Center for Biological Diversity’s energy justice program, said in a statement that the commission “has taken a step backward by widening the divide between those who can afford solar and those who can’t.”
“It’s an affront to low-income communities who are hit by the climate crisis first and worst, and we’ll do everything we can to convince the commission to fix the deep flaws in its proposal,” Lin said.
California, which is grappling with wildfires and drought fueled by climate change, has a goal to transition to 100% renewable energy by 2045.
