Enphase Energy (NASDAQ: ENPH) and SolarEdge Technologies (SEDG) are two of the five the largest declines in the S&P 500 on Thursday, -12.3% and -9.6% respectively, as solar stocks fall globally after NextEra Energy (BORN) the disclosure that the U.S. government’s investigation into solar panel imports delay the company’s solar and storage projects for at least a year.
Solar names are trading sharply lower across the board: (SHLS) -14.5%(ARRY) -11.9%(SPWR) -9.6%(DQ) -9.3%(MAXN) -9.1%(JKS) -8.6%(CSIQ) -6.7%(FSLR) -3.1%; ETFs: (TAN) -6.7%.
Three-quarters of solar companies say shipments have been affected since the US Commerce Department announced its investigation last month, according to trade group Solar Energy Industries Association.
During Thursday’s earnings conference call, a exasperated NextEra CEO John Ketchum discussed the investigation, rhetorically asking analysts how the Biden administration could “pull the rug out from under the industry’s feet,” slamming its hands on its desk with every word.
The company expects final tariff amounts to remain unknown until early 2025, assuming U.S. trade officials conclude their investigation by 2023.
Also, Solar FTC (FTCI) -7.6% as Piper Sandler downgrades stocks to underweight of Neutral with a price target of $3, reduced by $4, seeing “an above-average likelihood that the FTCI will lower its guidance as the company’s initial outlook incorporated a soft landing on AD/CVD. Bookings had already slowed considerably before the announcement of the investigation and have probably stopped since.”
Shares of Enphase Energy (ENPH) are trading at a high valuation premium due to the company’s “explosive revenue and earnings growth potential”, writes True Orion in a bullish analysis published recently on Seeking Alpha.