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Actionable news in SEDG: SolarEdge Technologies Inc,

Why This Analyst Has Downgraded 3 Solar Stocks

Renewable energy, specifically solar, may be offering investors a significant opportunity over the next several quarters, according to one key analyst. Several elements are firmly in place for the industry, or at least Oppenheimer believes so.

First, capital availability remains robust, especially given relatively wide spreads versus fixed income instruments with similar risk profiles. The firm believes this is a healthy environment for project businesses. Second, equipment prices are correcting, but in an asymmetrical manner, which should create trading opportunities. Third, additional policy clarity, particularly in China, would help the group, but timing is unclear. The firm believes investors will need to be nimble with this group through the first part of 2017 to generate positive returns.

In terms of the trading strategy, Oppenheimer believes in embracing reverse psychology. Given a growing awareness of price pressure and limited long-focused ownership in the group, it would...