Are you looking for a great investment opportunity in solar energy? Look no further: Goldman Sachs has just released a report suggesting that investors should consider three specific solar energy stocks with the potential for over 50% upside. This report could be the perfect chance for you to get in on the ground floor of an exciting and rapidly growing industry. Read on to learn more about these three solar energy stocks Goldman Sachs recommends investing in.
1) JinkoSolar Holding Co., Ltd. (NYSE: JKS)
JinkoSolar is one of the world’s leading producers of solar modules, with a production capacity of up to 20 GW per year. It has established sales networks in more than 50 countries and regions, including Europe, America, Japan, and India. The company also provides customers with other solar products and services, such as PV power stations, smart energy systems, and photovoltaic asset management.
According to Goldman Sachs, JinkoSolar is well-positioned to benefit from the booming demand for solar energy. The investment firm predicts that the global solar industry will grow at a compound annual growth rate (CAGR) of 17% between 2021 and 2025. It sees a potential upside of more than 50% for JKS stock.
The firm also sees JinkoSolar’s balance sheet as healthy, with a net debt-to-equity ratio of 0.06x. It also highlighted the company’s strong cost efficiency, low-cost funding and strong cash generation capabilities. Furthermore, Goldman Sachs expects JinkoSolar to benefit from its innovative technology, which allows it to produce high-quality and reliable photovoltaic modules at competitive prices.
Given the bullish outlook on the global solar industry and the company’s healthy balance sheet and innovative technology, Goldman Sachs believes investors should buy JKS stock now.
2) SunPower Corporation (NASDAQ: SPWR)
SunPower Corporation is a leading solar energy company that designs, manufactures, and delivers high-performance solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. Founded in 1985, SunPower has earned a reputation for delivering the most reliable, cost-effective solar energy solutions available on the market today. SunPower’s patented Maxeon® cell technology enables the delivery of up to 20% efficiency in residential and commercial applications and up to 28% efficiency in utility-scale applications.
In 2020, SunPower completed the sale of its profitable residential solar business to SunRun Inc., providing SunPower with the opportunity to focus on its core businesses and drive greater profitability. SunPower recently announced an industry-leading 500MW supply agreement with First Solar that further expands their presence in the commercial and utility-scale solar markets.
Goldman Sachs analysts are bullish on SunPower’s prospects and recommend investors buy the stock. The analysts anticipate the company will benefit from continued demand for renewable energy sources and increased margin expansion due to cost reductions and increased efficiency. Goldman Sachs sees a potential upside of 56% over the next 12 months, with a price target of $34 per share.
3) First Solar, Inc. (NASDAQ: FSLR)
First Solar is one of the world’s largest solar panel manufacturers and a leader in photovoltaic technology. The company designs manufactures and sells photovoltaic modules and systems that convert sunlight into electricity. First Solar was founded in 1999 and is headquartered in Arizona.
According to Goldman Sachs, First Solar has strong revenue and cost visibility, which gives it an edge over its competitors. It’s also seen as having the most upside potential in terms of growth, with Goldman expecting the company’s shares to increase by as much as 50% over the next year.
First Solar’s products have been used in various large-scale solar projects around the world, including in Mexico, India, and the United States. The company is also focusing on building out its manufacturing capacity to meet the growing demand for solar energy.
In addition to its core solar panel business, First Solar also provides software-as-a-service (SaaS) solutions for solar power plants. Its software provides predictive analytics to help customers optimize their solar investments and operations.
Overall, First Solar is well-positioned to benefit from the increasing demand for solar energy around the world. Its strong fundamentals, product offerings, and growth potential make it an attractive stock for investors looking for exposure to the renewable energy space.