It's a bullish day on Wall Street with the Dow Jones Industrial Average and the S&P 500 rising about 0.7% and 1.3%, respectively, as of this writing. Shares of alternative energy stocks Plug Power (PLUG -0.73%), Bloom Energy (BE -0.51%), and Enphase Energy (ENPH -2.57%) are all charging significantly higher during Thursday's trading session.
As of 2:04 p.m. ET, shares of fuel cell stocks Plug Power and Bloom Energy have risen 3.7% and 10%, respectively, while the stock of solar power specialist Enphase Energy is up 9.3%.
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Foreseeing a fortuitous future for fuel cell stocks
Motivating investors to pick up shares of both Plug Power and Bloom Energy, an analyst at KeyBanc Capital Markets has revealed an auspicious view on the stocks of both companies. Analyst Sophie Karp has set price targets on shares of Plug Power and Bloom Energy of $40 and $30, respectively, maintaining overweight ratings on both. Investors are taking note of the price targets in light of the significant upside each represents. For Plug Power, the new price target indicates potential upside of about 113%. The price target for Bloom Energy also suggests that the stock has plenty of room to run -- though not as far into the stratosphere as Plug Power -- with upside of about 62%.
Karp's bullish outlooks on Plug Power and Bloom Energy's stocks stand in stark contrast to the overall pessimism that Main Street has shown toward growth stocks recently. But it's not only the unfavorable market sentiment toward growth stocks that her price targets are diverging from -- it's also the bearish takes on Plug Power and Bloom Energy that other analysts have shown lately. In mid-May, Eric Stine, an analyst at Craig-Hallum, slashed his price target on shares of Plug Power to $31 from $49, according to The Fly, in part due to the fact that the company provided a disappointing first-quarter 2022 earnings report.
Biju Perincheril, an analyst at Susquehanna, also espoused a bearish take on both fuel cell stocks in May. Reducing the price target on Plug Power to $30 from $33, Perincheril also lowered the price target on Bloom Energy to $28 from $33.
Shining brightly in the Sunshine State
Move over, gas-powered generators. It seems that Floridians are shifting their home power needs to energy storage options such as those offered by Enphase Energy. The company announced today that "installers of Enphase products in Florida have seen growing deployments of Enphase Energy Systems powered by IQ Microinverters and IQ Batteries, as Florida homeowners prepare for power outages this hurricane season." Investors are taking note of the announcement because energy storage solutions figure prominently into the company's growth strategy, and they're likely speculating that Floridians' embrace of Enphase's energy storage solutions may be a harbinger of growth in other markets as well.
In the press release on the company's progress in the state, Chief Commercial Officer Dave Ranhoff said, "Enphase is pleased to work with Florida installers to provide homeowners with industry-leading and comprehensive home energy solutions to help power their essentials during outages and stay safe from natural disasters."
Should renewable energy enthusiasts be charged up about today's news?
With KeyBanc seeing ample upside to the stocks of Plug Power and Bloom Energy, investors who have been on the sidelines may feel moved to grab shares before they start to run higher. This would be a foolhardy move to make, though. Analysts oftentimes have shorter investing horizons than the long-term holding periods favored here at The Motley Fool. Therefore, those whose interest is piqued with the analyst upgrade would be better served to investigate further before opening -- or adding to -- positions.
Regarding solar power specialist Enphase Energy, the news that it's prospering in Florida is certainly noteworthy, but it's hardly enough to merit picking up shares. There's much more to the company's success than merely its energy storage business.
