What happened
Tigo Energy (TYGO -21.68%) stock got a boost in recent days with not one but two very positive new analyst takes on the specialty solar energy solutions company. This pushed the company's shares almost 14% higher for the week as of early-morning trading on Friday, according to data compiled by S&P Global Market Intelligence.
So what
The duo, Roth/MKM's Philip Shen and Craig-Hallum's Eric Stine, separately initiated coverage on Tigo stock on Tuesday. Of the two, Stine is more bullish, ranking the shares as a buy at a price target of $28 per share. This implies significant upside on the current share price of more than 52%.
The prognosticator did not hold back in his enthusiasm over the niche solar energy company's prospects. He described Tigo as an "undiscovered gem" in a worldwide solar market that is currently enjoying a burst of expansion.
As for Shen, he also flagged the company as a buy, albeit with a lower price target of $21 per share. Referring to Tigo's cost-reducing technologies, the analyst wrote in a fresh note that "the company has an attractive value proposition with its flexible optimizer technology, and customers are looking for alternatives."
He added, "As a lower cost option, we see rapid growth/attractive margin potential."
Now what
Those words resounded with investors, particularly since (as Shen pointed out) we are in an environment of increasing take-up, and acceptance, of renewable energy solutions. Costs for solar have come down to the point where many homeowners can arrange it as their main or sole energy source, a trend that offers great potential to solutions providers like Tigo.