Goldman Sachs Gives A Solar Pair Trade

In a report published Thursday, Goldman Sachs analysts mention their top ideas into 1Q15, saying that they see stock setup "favoring laggards with low expectations" like

, and "potential beat-raise picks" like

. The analysts added that EPS risk is highest for

. SolarCity, which is rated Buy, sees "volume back on track." "We model strong 1Q15 execution, including in line revenue and EPS and highlighted by a "righting of the ship" in installation volumes (in line with 145MW guide) as datapoints suggest strength in key states (CA, AZ, NJ)," the analysts wrote. Goldman Sachs sees reported value metrics for SolarCity as "better than feared." SolarEdge, which is rated also rated Buy, is expected to report its F3Q15 (Mar) EPS at $0.07, in-line with consensus in the first post-IPO print. The company's guidance is also likely to be in-line with expectations, but "potentially capturing a better than expected high end owing to share gains and continued volume strength at key customers." Enphase Energy, which is rated Sell by Goldman Sachs, is expected to report its EPS at ($0.10), short of the consensus ($0.08), due to limited operating leverage. The company may issue disappointing 2Q15 guidance, "as data points and separate checks continue to suggest share loss is set to accelerate in 2015," the analysts explained.