Latest news with #JonWindham
CNBC
3 days ago
- Business
- CNBC
UBS says this solar stock can rally 75% even as U.S. budget bill poses risks to clean energy
Sunrun can surge from here even as a new U.S. budget bill poses a risk to the clean energy sector, according to UBS. Analyst Jon Windham kept his buy rating on the solar company. He did cut his price target to $12 from $17, but that still implies the stock could still gain 75% from Thursday's close. Sunrun shares have plunged nearly 26% this year and more than 52% over the past year, as traders ditch clean energy names under the Trump administration. The Invesco Solar ETF (TAN) has dropped more than 3% in 2025 and 13% in the past six months. The latest headwind for the sector comes after the U.S. House of Representatives on May 22 passed the "One Big Beautiful Bill Act," which proposes to eliminate the 30% Investment Tax Credit by the end of December. The bill has allowed homeowners to reduce their electricity costs by installing solar panels and battery storage systems. "Our lower target multiple reflects the overall intent of the House to seemingly remove all tax credits regarding residential solar and our relatively negative outlook on the Senate's willingness to preserve the credits compared to programs like the 45x manufacturing credit," Windham wrote in a Friday note to clients. RUN 1Y mountain Sunrun stock performance. But according to the analyst, Sunrun could remain resilient in the face of these cuts. If the residential tax credits are fully slashed, he said Sunrun could survive regulatory changes by structuring its Power Purchase Agreement options, getting more state-level policy support and transitioning to end markets such as commercial and industrial and community solar. He also noted that the company has strong assets. "Our estimates are unchanged as there is the potential for revisions in the U.S. Senate and possible that a final bill does not pass," Windham wrote. "We maintain our buy rating ... based on RUN's underlying $2.6bn portfolio of contracted net earning assets. In addition, we see potential upside scenarios beyond the U.S. budget bill." Wall Street remains split on Sunrun. Of the 25 analysts covering the stock, on rates it a strong buy, while 10 rate it a buy and 12 give it a hold, per LSEG.
Yahoo
17-05-2025
- Business
- Yahoo
Fluence Energy, Inc. (FLNC) was Upgraded by Analysts This Week. Here is Why.
Fluence Energy, Inc. (NASDAQ:FLNC) was upgraded by not one, but two analysts this week. Let's take a look at why that happened. Fluence Energy, Inc. (NASDAQ:FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. Fluence Energy, Inc. (NASDAQ:FLNC) was upgraded by UBS' Jon Windham this week, who raised its price target from $4.5 to $6, while retaining its Neutral rating. The firm's bullish take on the stock was based chiefly on the trade truce between the US and China, with the belief that companies that factored high tariffs into their guidance might stand to benefit. Fluence received another upgrade this week, from RBC Capital's Christopher Dendrinos, who raised the energy company's price target from $6 per share to $7, while also maintaining a Neutral recommendation. It must also be noted that Fluence Energy, Inc. (NASDAQ:FLNC) reported its Q2 2025 results last week, beating both EPS and revenue estimates. However, the company reduced its guidance for the second quarter in a row, largely due to the economic uncertainty caused by President Trump's tariffs. Given the positive investor sentiment following the aforementioned developments, the share price of Fluence Energy, Inc. (NASDAQ:FLNC) has surged by more than 18% over the last week. While we acknowledge the potential of FLNC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FLNC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
