The Invesco Solar ETF (TAN) - Get Invesco Solar ETF Report was rising Thursday as investors expect an industry boost from U.S. President Joe Biden's executive orders bolstering the clean-energy industry.
On Wednesday, shortly after taking his oath of office at the presidential inauguration ceremony at the Capitol, Biden signed a number of actions to combat climate change. A key order: the move to rejoin the Paris climate agreement.
The president also signed an executive order imposing a moratorium on oil leasing in the Arctic National Wildlife Refuge, signaling that alternative energy will a priority for the Joe Biden/Kamala Harris administration.
In his campaign plan on joebiden.com, Biden pledged to "launch a national effort aimed at creating the jobs we need to build a modern, sustainable infrastructure now and deliver an equitable clean energy future."
Morgan Stanley analyst Stephen Byrd took the opportunity to initiate coverage of SolarEdge (SEDG) - Get SolarEdge Technologies, Inc. Report with an overweight rating and a $354 price target. The target indicates 19% upside from the stock's Wednesday closing price.
The Invesco Solar ETF at last check was trading up 0.2% at $115.04.
SolarEdge shares were rising 4% to $309.11 following the initiation.
All told, Biden issued 17 executive orders in the hours following his ascension to the presidency, according to the New York Times. He focused on the coronavirus pandemic, immigration, racial and sexual equality and climate change.
The U.S. will rejoin the Paris climate accords in 30 days, per Biden's order, reversing Donald Trump's decision in 2019 to withdraw from the 200-nation agreement.
Among other solar stocks, SunPower (SPWR) - Get SunPower Corporation Report was up 5% at $39.23, First Solar (FSLR) - Get First Solar, Inc. Report added 1.2% to $102.96, and Canadian Solar (CSIQ) - Get Canadian Solar Inc. Report rose 3.3% to $59.09.