Four Solar Stocks Cut by UBS on Potential Election Volatility

Four solar-energy stocks -- SolarEdge, SunPower, JinkoSolar and SunRun -- were downgraded at UBS to sell.
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Four solar-energy stocks -- SolarEdge,  (SEDG) - Get Report SunPower,  (SPWR) - Get Report JinkoSolar  (JKS) - Get Report and SunRun  (RUN) - Get Report -- were downgraded at UBS to sell from neutral.

UBS analyst Jon Windham said this might be a good selling level, given potential volatility surrounding next Tuesday’s election, Bloomberg reports.

- SolarEdge Technologies  (SEDG) - Get Report recently traded at $265, down 2.9%. The stock has nearly tripled this year. 

- SunPower  (SPWR) - Get Report recently traded at $15.60, down 5%. The shares have more than tripled year to date.

- JinkoSolar  (JKS) - Get Report recently traded at $60.50, down 6.8%. The stock has nearly tripled this year. 

- SunRun  (RUN) - Get Report recently traded at $55.72, down 1%. The stock has quadrupled. year to date.

The stocks have benefited in recent months from investor enthusiasm about alternative-energy companies.

But “even a Blue Wave election would result in less-than-priced-in policy support over the next year” for the solar industry, Windham said. 

A blue wave would mean Democratic Party victories for the presidency and both houses of Congress.

Current valuations for the stocks “reflect campaign platform optimism more than realistic 2021-24 policy implementation,” he said.

Still, Windham raised his share-price target for all four companies in expectation of strong demand for renewable energy and green stocks. 

He raised his targets on SolarEdge to $210 from $160, on SunPower to $11 from $10, on JinkoSolar to $55 from $30 and on SunRun to $43 from $25.

In other renewable-energy news Tuesday, SPI Energy  (SPI) - Get Report said it would spin off its Solar Juice unit through an initial public offering. The Santa Clara, Calif., company said it would retain majority ownership of Solar Juice after the spinoff.