Latest news with #JosephOsha
Yahoo
22-05-2025
- Business
- Yahoo
Solar Energy Stocks Hits Massive Sell-Off After House Passes GOP Tax Bill
May 22 - Solar-related shares tumbled Thursday after House Republicans passed a tax proposal that would eliminate key clean energy incentives. Sunrun (NASDAQ:RUN), a leading residential solar installer, plunged more than 35% as the bill targets tax credits tied to leased rooftop solar systems, an arrangement used by roughly 70% of the industry, according to Guggenheim analyst Joseph Osha. Warning! GuruFocus has detected 8 Warning Signs with RUN. Enphase Energy (NASDAQ:ENPH) and SolarEdge Technologies (NASDAQ:SEDG), which sell inverters for solar installations, dropped about 16% and 24%, respectively. Utility-scale solar developers were also hit, with Array Technologies (ARRY) down more than 13% and Nextracker (NASDAQ:NXT) off over 6%. The legislation would end investment and production credits for clean energy projects that start construction 60 days after the bill becomes law or enter service after Dec. 31, 2028. Jefferies analysts described the plan as taking a sledgehammer to the Inflation Reduction Act. First Solar (NASDAQ:FSLR) slid just over 3%, outperforming peers, as its domestic manufacturing operations would likely remain eligible for tax support. Manufacturing-related credits were largely unaffected by the proposal. The bill now heads to the Senate, where revisions are expected. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Solar Energy Stocks Hits Massive Sell-Off After House Passes GOP Tax Bill
May 22 - Solar-related shares tumbled Thursday after House Republicans passed a tax proposal that would eliminate key clean energy incentives. Sunrun (NASDAQ:RUN), a leading residential solar installer, plunged more than 35% as the bill targets tax credits tied to leased rooftop solar systems, an arrangement used by roughly 70% of the industry, according to Guggenheim analyst Joseph Osha. Warning! GuruFocus has detected 8 Warning Signs with RUN. Enphase Energy (NASDAQ:ENPH) and SolarEdge Technologies (NASDAQ:SEDG), which sell inverters for solar installations, dropped about 16% and 24%, respectively. Utility-scale solar developers were also hit, with Array Technologies (ARRY) down more than 13% and Nextracker (NASDAQ:NXT) off over 6%. The legislation would end investment and production credits for clean energy projects that start construction 60 days after the bill becomes law or enter service after Dec. 31, 2028. Jefferies analysts described the plan as taking a sledgehammer to the Inflation Reduction Act. First Solar (NASDAQ:FSLR) slid just over 3%, outperforming peers, as its domestic manufacturing operations would likely remain eligible for tax support. Manufacturing-related credits were largely unaffected by the proposal. The bill now heads to the Senate, where revisions are expected. This article first appeared on GuruFocus.
NBC News
22-05-2025
- Business
- NBC News
Solar stocks plunge as Republican tax bill worse than feared for clean energy
Solar stocks plunged Thursday after House Republicans passed a tax bill that terminates key clean energy credits. Residential solar installer Sunrun plummeted more than 35%. The legislation ends tax credits for installers like Sunrun that lease equipment to customers. The GOP bill is a 'worse than feared' scenario for clean energy, as it takes a 'sledgehammer' to the Inflation Reduction Act, Jefferies analysts led by Julien Dumoulin-Smith told clients in a note. Some 70% of the rooftop solar industry now uses lease arrangements, making the bill disastrous for companies like Sunrun, Guggenheim analyst Joseph Osha told clients. Enphase and SolarEdge sank about 16% and 24%, respectively, as sales of their inverters would take a hit from lower demand for rooftop solar. The bill also ends the investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after Dec. 31, 2028. Those credits have played a key role in the rapid expansion of utility-scale solar projects in the U.S. Solar stocks exposed to the utility sector tumbled, with Array falling more than 13% and Nextracker down more than 6%. Array and Nextracker make devices that allow solar panels to track the position of the sun. First Solar, however, fell just over 3% as the bill left the manufacturing tax credit relatively unscathed. First Solar is the biggest producer of solar panels in the U.S. with a large domestic manufacturing footprint. 'Manufacturing subsidies do not appear to have been touched — good news for FSLR,' Osha said. While the bill is bad for solar, Jefferies expects the Senate to make changes to the legislation.
CNBC
22-05-2025
- Business
- CNBC
Solar stocks plunge as Republican tax bill worse than feared for clean energy
Solar stocks plunged premarket on Thursday after House Republicans passed a tax bill that terminates key clean energy credits. Residential solar installer Sunrun plummeted more than 35%. The legislation ends tax credits for installers like Sunrun that lease equipment to customers. The GOP bill is a "worse than feared" scenario for clean energy, as it takes a "sledgehammer" to the Inflation Reduction Act, Jefferies analysts led by Julien Dumoulin-Smith told clients in a note. Some 70% of the rooftop solar industry now uses lease arrangements, making the bill disastrous for companies like Sunrun, Guggenheim analyst Joseph Osha told clients. Enphase and SolarEdge plummeted about 18%, as sales of their inverters would take a hit from lower demand for rooftop solar. The bill also ends the investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after Dec. 31, 2028. Those credits have played a key role in the rapid expansion of utility-scale solar projects in the U.S. Solar stocks exposed to the utility sector tumbled, with Array and Nextracker down 14% and 5%, respectively. Array and Nextracker make devices that allow solar panels track the position of the sun. First Solar, however, fell just 1% as the bill left the manufacturing tax credit relatively unscathed. First Solar is the biggest producer of solar panels in the U.S. with a large domestic manufacturing footprint. "Manufacturing subsidies do not appear to have been touched – good news for FSLR," Osha said. While the bill is bad for solar, Jefferies expects the Senate to make changes to the legislation.
Yahoo
08-05-2025
- Business
- Yahoo
Can Sunrun Weather the Policy Storm? Analysts Weigh Potential Solar ITC Cuts
Sunrun Inc. (NASDAQ:RUN) shares are trading higher on Thursday after the company reported better-than-expected first-quarter results on Wednesday. The company reported an EPS of 20 cents per share, which beat the analyst consensus estimate of 25 cents loss and revenue of $504.27 million, which beat the consensus estimate of $484.06 million. Guggenheim analyst Joseph Osha kept Neutral rating on the stock and writes that while overall customer volume growth is modest in the quarter (additions of 25,428, up only 6%, with expected decelerating comps). The analyst anticipates the company to continue to prioritize liquidity and profitability over aggressive growth in the near to medium term, awaiting a more favorable projects Sunrun to become an increasingly dominant player as the residential solar industry consolidates. The analyst writes that the company's main challenges are policy-related, particularly the solar Investment Tax Credit (ITC), which significantly impacts their cash generation ($50 million impact on cash flow for every 1% change in the effective ITC rate). The analyst notes that the company has strategies to counteract a lower ITC, and management stated their belief that the company can still generate cash under such circumstances. However, the analyst adds that accurately predicting the net effect and timing of potential changes to the Inflation Reduction Act on cash generation is exceedingly challenging. Osha expects this to pose a considerable challenge for RUN investors in the medium term. KeyBanc analyst Sophie Karp reiterated a Sector Weight rating and said the results beat consensus. They exceeded their solar and storage capacity addition guidance and marked their fourth quarter of positive cash flow. The company's second quarter and FY25 guidance indicates strong demand across channels, and they continued to reduce corporate debt, adds the analyst. Karp writes that while these positives might offer some valuation support, broader uncertainty around government and fiscal policy, coupled with persistently high industry-wide cost of capital, can lead to shares unlikely to regain positive momentum in the near term. Investors can gain exposure to the stock via the Invesco Solar ETF (NYSE:TAN) and the ProShares S&P Kensho Cleantech ETF (NYSE:CTEX). Price Action: RUN shares are up 11.7% at $8.255 at the last check on Thursday. Read Next:Image via Shutterstock Date Firm Action From To Feb 2022 Wolfe Research Maintains Outperform Jan 2022 Truist Securities Maintains Buy Dec 2021 Keybanc Downgrades Overweight Sector Weight View More Analyst Ratings for RUN View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SUNRUN (RUN): Free Stock Analysis Report This article Can Sunrun Weather the Policy Storm? Analysts Weigh Potential Solar ITC Cuts originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
