Brexit Could Impact Solar Stocks (FSLR) (SEDG) (ENPH), But Not (SCTY) - Neeham & Company

Neeham & Company analyst Y. Edwin Mok weighed in on Brexit impact on the solar industry. The analyst sees the event having the biggest impact to module and inverter suppliers, including First Solar (NASDAQ: FSLR) [Hold], and SolarEdge (NASDAQ: SEDG) [Buy], and Enphase Energy (NASDAQ: ENPH) [Hold] in the firm's coverage. On the other hand, the U.S.-centric installers, such as SolarCity (NASDAQ: SCTY) [Hold] would have no direct impact."

Mok commented, "The surprise Brexit vote could have a lasting impact on the European and global economy, as well as the potential for devaluing the Euro. These macro concerns have significant implications on the Solar industry, in our view, due to risks of an economic slowdown that could eventually reduce capital investments and demand for solar. While Europe is no longer the world's largest solar market, it still holds significance, representing 10-12% of 2016-18 solar installations in our model. Demand in the U.K. has already come down substantially due to the end of the generous FiT program, and therefore, we see less of a direct impact today. Overall, we see the event having the biggest impact to module and inverter suppliers, including FSLR [Hold], SEDG [Buy], and ENPH [Hold] in our coverage. On the other hand, the U.S.-centric installers, such as SCTY [Hold] would have no direct impact."

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