Some residential-solar stocks rose Tuesday amid a boost in analyst optimism about the sector’s prospects.
Among the movers: Vivint Solar (ticker: VSLR), was up 2.4% late morning to $8.49, while the S&P 500 was about flat. KeyBanc Capital Markets analyst Sophie Karp started coverage of Vivint on Monday with an Overweight rating and a $12 price targets, 45% above Monday’s close.
Karp also started Sunrun (RUN) and Sunnova Energy International (NOVA) with Outperform ratings, along with $19 and $13 price targets, respectively. SunRun’s stock was up 1.2% to $15.96, while Sunnova’s was down 6% to $10.54.
Meanwhile Tesla (TSLA) is now offering residential solar panels on a rental basis—though it is “still better to buy,” CEO Elon Musk tweeted Sunday. (His company’s principal business, of course, is building electric cars.)
Vivint and Sunrun had seen their shares rise for most of 2019, outperforming the S&P 500, before they both dipped earlier this month.
“The recent weakness in the shares of residential-solar companies presents an attractive entry point for stocks with significant growth prospects,” Karp wrote. “Residential solar companies enjoy a constructive regulatory framework, a large total addressable market with low market penetration, and a favorable cost equation.”