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Solar Stocks Surge on Trade Probe Hopes
7 Jul
Summary
- Enphase shares rose 3.3% following a sector-wide solar stock rally.
- A Wells Fargo note on First Solar influenced the broader market sentiment.
- Polysilicon probe conclusion expected by early August could impact prices.
Shares of Enphase experienced a notable increase, trading up 3.3% to $44.58. This rise occurred amidst a broader sector-wide rally among solar stocks, primarily influenced by a bullish report from Wells Fargo concerning peer company First Solar.
The analyst note raised First Solar's price target, highlighting potential advantages stemming from an ongoing U.S. Department of Commerce investigation into imported polysilicon. While Enphase did not receive a specific analyst upgrade, its stock benefited from the positive momentum generated across the solar industry.
Investor interest appears to be driven by expectations surrounding the investigation's outcome, which is slated for early August. A favorable ruling could lead to improved access to polysilicon for domestic manufacturers and potentially increase U.S. solar module prices, thereby repricing the entire domestic solar market.
This development comes after a period of significant volatility for Enphase, which has seen numerous large price swings over the past year. The stock is up 32.1% year-to-date but remains substantially below its 52-week high.
