Cleantech stocks struggle for catalysts in 2026

Investing.com -- U.S. cleantech stocks remain stuck in a tough cycle of weak demand signals, policy uncertainty and balance sheet risks which is capped near-term upside even after sharp share price declines.

Raymond James resumed coverage of Enphase Energy Inc at Market Perform.

The company operates in a solar market heavily shaped by government subsidies, net metering rules and financing costs, all of which have moved in an unfavorable direction at the same time.

Analysts called Enphase a high-quality business with strong customer loyalty, dominant market share and historically high margins.

But with residential solar demand still fragile, Raymond James said the stock looks fairly valued and could remain trapped in a short-term cycle rather than a sustained recovery.

Sunrun Inc was started at Market Perform, with RJ saying complexity is a key hurdle. Sunrun sits somewhere between a distributed utility and a specialty finance company, making its true earning power difficult to assess.

While there may be value for investors willing to do deep work on asset-level cash flows, the analysts said the structure may be too complex for many portfolios, particularly retail-focused ones.

SolarEdge Technologies Inc was also started at Market Perform, with Raymond James framing it as a turnaround with meaningful risk.

The firm said upside could be significant if earnings normalize and U.S. manufacturing tax credits kick in, but warned that the chance of lasting damage remains.

SolarEdge is emerging from years of losses, inventory write-downs, management turnover and margin pressure, and is still rebuilding its inverter business.

First Solar Inc is rated Market Perform after a sharp rally.

The company is well positioned to benefit from U.S. trade protection, domestic manufacturing credits and a strong backlog, but much of this optimism is already reflected in the stock.

It wants more clarity on order conversion, backlog trends and whether generous supply-side incentives could eventually lead to overcapacity as demand-side subsidies fade.

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