Truist analysts revealed in a note Tuesday that the firm has upgraded Sunnova Energy International Inc . (NYSE:NOVA) and Enphase Energy (NASDAQ:ENPH) to Buy and downgraded Bloom Energy Corp . (NYSE:BE) to sell.
The firm also increased the Sunnova price target to $18 from $10 and the Enphase price target to $145 from $85. The Bloom target was cut to $9 from $12 per share.
"It will come as no surprise that 2023/start of 2024 have been challenging for the Sustainability space," the analysts said.
"Up and to the right growth expectations driven by low rates and a global focus on energy availability have fallen back to earth, taking shares with it," they added.
While the firm believes we have not seen the end of volatility in the group, they believe there is a meaningful upside opportunity moving into the fed rate cut cycle, particularly for the residential solar group. On the flip side, they believe there is an incremental downside risk to more nascent industries like hydrogen/fuel cells.