Enphase Energy surges to top of S&P 500 after Powell appears to open path for rate cuts

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Enphase Energy (NASDAQ:ENPH [https://seekingalpha.com/symbol/ENPH]) pops to the top of the S&P 500 leaderboard Friday, +10%, after Federal Reserve Chair Powell hinted that policymakers may cut interest rates soon [https://seekingalpha.com/news/4488363-fed-rate-cut-odds-rise-after-powells-jackson-hole-speech], which would benefit companies that depend on lower borrowing costs, including solar providers.

Among other top solar names: Fluence Energy (FLNC [https://seekingalpha.com/symbol/FLNC]) +11.5%, Solaredge Technologies (SEDG [https://seekingalpha.com/symbol/SEDG]) +11.2%, Shoals Technologies (SHLS [https://seekingalpha.com/symbol/SHLS]) +9%, Sunrun (RUN [https://seekingalpha.com/symbol/RUN]) +8.1%, Eos Energy Enterprises (EOSE [https://seekingalpha.com/symbol/EOSE]) +5.5%, Canadian Solar (CSIQ [https://seekingalpha.com/symbol/CSIQ]) +5.4%, Array Technologies (ARRY [https://seekingalpha.com/symbol/ARRY]) +5.1%.

In his much-anticipated speech at the Fed’s annual symposium in Jackson Hole, Wyoming, Powell said "the balance of risks appear to be shifting" between the central bank's twin goals of full employment and stable prices, and "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

First Solar (NASDAQ:FSLR [https://seekingalpha.com/symbol/FSLR]) +4.8% as Guggenheim maintained its Buy recommendation and hiked its stock price target to $287 from $202, driven by its revised assumption that the company likely will continue operating its Malaysia and Vietnam facilities for the foreseeable future, albeit at lower utilization rates relative to its more advanced Series 7 capacity in the U.S. and India.

First Solar's (NASDAQ:FSLR [https://seekingalpha.com/symbol/FSLR]) willingness to consider building a U.S.-based finishing facility to complete intermediate product from those two factories, and to claim the resulting $0.07/watt module credit, was "greater than we thought," Guggenheim's Joseph Osha wrote.

The analyst also expects the Treasury Department's pending clarification of FEOC rules to lend further support to First Solar's (FSLR [https://seekingalpha.com/symbol/FSLR]) plans, and noted the tariff outlook for Malaysia and Vietnam appears to have stabilized at levels that make continued operations viable.

ETF: (NYSEARCA:TAN [https://seekingalpha.com/symbol/TAN])

MORE ON ENPHASE ENERGY AND FIRST SOLAR

* Enphase Energy: Bear Case Weakens, Why I'm Upgrading To Hold [https://seekingalpha.com/article/4815941-enphase-energy-bear-case-weakens-why-im-upgrading-to-hold]
* OBBB Shakes Up Solar Utility Hierarchy [https://seekingalpha.com/article/4814040-obbb-shakes-up-solar-utility-hierarchy]
* Putting America First With First Solar [https://seekingalpha.com/article/4813989-putting-america-first-with-first-solar]