Enphase Energy (ENPH-4.8%) and SolarEdge Technologies (SEDG-1.6%) are initiated at Wells Fargo with Overweight ratings and respective $313 and $41 price targets, as both are poised to benefit from a number of long-term tailwinds for the solar market.
For Enphase, Wells points to two key competitive advantages that should support growth visibility: regulation NEC 2017, which creates barriers to entry in the U.S. market; and product innovation and software technology, which provide customers with an intelligent home energy management system.
SolarEdge is seen benefit from higher battery attach rates over time and the decentralization of energy production.
Meanwhile, Wells also initiates First Solar (FSLR-1.4%) and Canadian Solar (CSIQ-3.1%) with Equla Weight ratings and respective $115 and $44 price targets.