2 actions to fight climate change, recession and inflation

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SolarEdge and Wolfspeed could benefit from higher electricity prices, says Oppenheimer.

Sean Gallup/Getty Images

According to Oppenheimer, investors worried about climate change and inflation have two strong recession hedges to consider.

Company analyst Colin Rusch reversed his rating on SolarEdge (ticker: SEDG) and

Wolfspeed

(WOLF) outperforms Perform Thursday. Rusch has price targets of $334 and $105 on SolarEdge and Wolfspeed, respectively.

SolarEdge stock jumped 10% to 298.91 in Thursday’s recent session, while

Wolfspeed

climbed 5% to $298.91.

According to the analyst, these two stocks can help investors defend themselves in a volatile market and against fears of inflation and recession. This is because they display an attractive financial situation, in a context of emission reduction policies. They are also benefiting from the focus on access to cheap energy sources, as fossil fuel prices have soared this year.

SolarEdge

designs solar inverters – equipment that converts direct current electricity produced by solar panels to alternating current used by the power grid – as well as a range of other products. Wolfspeed provides products for electric vehicles, aerospace, 5G, renewable energy and storage.

The analyst pointed to high natural gas prices and further electricity rate increases across the world. He expects the global solar industry to grow three to five times over the next decade.

Rusch adds that the two companies also stand out within their industry:[These] differentiated technology platforms [are] positioned to grow beyond its peers in climate change mitigation.

As for their financials, Rush estimates SolarEdge earnings at $5.60 per share for 2023 and $8.34 for 2024, with potential margin for those forecasts.

For Wolfspeed, Rush pointed to the $90 million reimbursement the company received from New York State to open a silicon carbide chip factory, and predicted it would get an additional $410 million in reimbursements. by the end of this year. Rush changed its full-year 2023 earnings estimate for Wolfspeed to a loss per share of 27 cents, narrower than its previous forecast of a loss of 29 cents.

Write to Karishma Vanjani at [email protected]

Teresa H. Sadler