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Roth Capital Shines Positive On Solar: Upgrades JA Solar, ReneSola, Enphase

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Roth Capital Shines Positive On Solar: Upgrades JA Solar, ReneSola, Enphase

Solar energy companies' shares are rallying Wednesday following the agreement by congressional leaders to extend a significant tax credit for the industry. Roth Capital gave Buy ratings across the sector for nearly all solar stocks.

A Budget Deal For The Solar Industry

Congressional Republican leaders have agreed to extend a 30 percent investment tax credit, or ITC, for commercial, utility and rooftop solar projects from now through 2019. The credit for the budget deal is slated to fall 10 percent in 2017. The Democratic leaders have agreed to the decades-old demands to rid of crude oil exports, banning them from the United States. The vote by congressional leaders is expected to be held this week.

Related Link: Why Short Interest Surged In These 3 Solar Stocks

Roth Capital Analyst Reaction

Roth Capital analyst Philip Shen sees the ITC extension as likely to have a positive impact quite possibly on "nearly all solar stocks." According to Roth Capital's latest equity research notes on solar released Wednesday, ReneSola Ltd. (ADR) (NYSE: SOL), Enphase Energy Inc (NASDAQ: ENPH) and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) were among some of the solar companies given Buy ratings by the research firm.

'Quite Bullish' On Solar If Deal Is Passed

JA Solar Holdings received a price target of $9.18 from the firm. Roth Capital noted that the extension could lead to higher volumes in the United States, as the company works to expand its presence in the U.S. market (JA Solar recently hired Robert Petrina, the former managing director of Yingli Green Energy Americas).

ReneSola has a target price of $1.70 from the firm. Roth Capital also believes an extension could lead to higher U.S. volumes and opportunities to expand its project business for the company.

Roth Capital has set a target price of $2.41 on Enphase, seeing the company as highly exposed to the U.S. residential solar market.

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