Wall Street predicts 3 solar stocks to more than double in next 12 months
Tax credits, government initiatives to meet zero carbon targets, and growing demand for solar panel installations are expected to support the growth of the solar industry in the coming months. Therefore, Wall Street analysts expect solar stocks ReneSola (SOL), SPI Energy (SPI) and I Sun (ISUN) to double over the next 12 months. Read on to find out more.
According to a recent report by the Solar Energy Industries Association (SEIA), the solar industry topped three million solar installations in 2021 and the residential solar market increased by 21% year-on-year. While supply chain constraints and rising raw material costs have negatively affected facilities, year-over-year increase in utility prices has supported industry growth.
In addition, with the introduction of the Federal Investment Tax Credit (CII) for solar energy, which offers a 26% tax credit for systems installed in 2020-2022, more and more homeowners and commercial sectors have installed solar panels. The global solar energy market is expected to reach $ 223.3 billion by 2026, reach a CAGR of 20.5%.
In this context, we think that it could be interesting to add the solar shares ReneSola Ltd (GROUND), SPI Energy Co., Ltd. (SPI) and iSun, Inc. (ISUN) to his watch list. Wall Street analysts expect them to more than double their price over the next 12 months.
ReneSola Ltd (GROUND)
SOL is a global developer and operator of solar projects that focuses on solar energy project development, construction management and project finance services. The Yaozhuang Town, China-based company operates through three segments: Development of solar energy projects; EPC services; and income from electricity generation. As of December 31, 2020, SOL operated approximately 100 solar power projects with a total capacity of 173 megawatts.
For the third quarter, ended September 30, 2021, SOL’s net revenue increased 59.4% year-over-year to $ 15.54 million. The company’s gross profit rose 3.1% from its value a year ago to $ 6.09 million. Its operating income was $ 2.72 million. In addition, the company’s net income amounted to $ 711,000 during the period.
SOL’s revenue increased 62.6% year-over-year to $ 132.12 million in its 2022 fiscal year. The company has an impressive track record of surprising earnings; it has beaten the consensus EPS in three of the past four quarters. And its EPS is expected to grow 83.3% next year. The stock has jumped 5.4% in the last five trading days.
Last trading session closed at $ 6.02, on $ 13.75 average analyst price target represents an increase potential of 128.4%.
SPI Energy Co., Ltd. (SPI)
Headquartered in Sha Tin, Hong Kong, SPI provides photovoltaic solutions for businesses, individuals, governments, utilities and investors. The company operates in the segment of solar energy related products and services. SPI also offers engineering, procurement and construction services in Greece, United States, Italy, Japan, United Kingdom, Australia and regulatory.
This month, SPI’s solar business acquired the existing lease for the original 140,000 square foot Sunergy photovoltaic solar power plant in Sacramento, California. With this facility, SPI is expected to support its growth and develop the green economy with a California-based solar module manufacturing facility that will allow the company to supply products made in the United States.
During the six-month period ended June 30, 2021, SPI’s revenue increased 40.8% year-on-year to $ 79.4 million. The company’s gross profit rose 138.7% from its value a year ago to $ 7.4 million. And his Cash and cash equivalents was $ 22.8 million at the end of the period.
SPI’s consensus revenue of $ 304 million for the year ending December 2022 represents a 54% year-over-year increase. Its EPS is expected to grow 37.4% next year.
The consensus price goal of $ 12 represents a potential gain of 219.2% from its last closing price of $ 3.76.
iSun, Inc. (ISUN)
ISUN, a solar company based in South Burlington, Vt., Is a solar engineering, construction and supply contractor for commercial and industrial customers in the Northeastern United States. The company’s branded offerings include the iSun Energy & Mobility Hub and the iSun Oasis Smart Solar Bench. ISUN also provides electricity subcontracting services and data and communication services.
In November, ISUN agreed with Encore Renewable Energy, a leading innovator in community-wide clean energy, to take a strategic minority stake. With this investment in Encore Renewable Energy, ISUN expects to accelerate its expansion into new geographic markets and strengthen its long-standing relationship with Encore Renewable Energy.
ISUN revenue increased 34.5% year-on-year to $ 6.68 million in the third quarter, ended September 30, 2021. The company’s gross profit increased 448.1% from compared to its value a year ago to reach $ 1.3 million. And its cash flow increased 3,827.6% from the previous year’s quarter to $ 27.46 million for the nine months ended September 30, 2021.
Analysts expect ISUN’s revenue to grow 292.6 percent year-on-year to $ 165.25 million in its 2022 fiscal year. Its EPS is expected to grow 338.5 percent next year. In addition, the stock has gained 12.4% in progress since the start of the year.
Closing its last trading session at $ 6.69, the average analyst price target of $ 33 represents an increase potential of 393.3%.
SOL shares were trading at $ 5.99 per share on Friday morning, down $ 0.03 (-0.50%). Year-to-date, SOL is down -47.59%, compared to a 24.16% increase in the benchmark S&P 500 over the same period.
About the Author: Priyanka Mandal
Priyanka is an avid investment analyst and financial journalist. After get a master’s degree in economics, her interest in financial markets motivated her to start her career in investment research.
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