With climate change becoming a front-and-center story again after two horrific hurricanes ripped into Texas and Florida, and with people clamoring for more alternative energy, it’s clear that the bigger picture might be the fact that burgeoning middle class growth in China could drive the need for energy, and solar can help fill that need. The country expected to add 35 to 40 gigawatts in 2018, though that is lower to inline with this year, but it still represents solid growth.
A new JPMorgan research report hardly pounds the table on the industries, but it does have a trio of companies the analyst feels makes sense for investors now. With China remaining the growth driver for the sector, and the country’s unpredictable demand always being a wild card, the firm sticks with three top stocks for investors to consider. All are rated Overweight.
This company offers investors a solid dividend play. 8Point3 Energy Partners L.P. (NASDAQ: CAFD) is a dividend growth-orientated company formed by its sponsors and general partners SunPower and First Solar to own and operate contracted renewable generation assets. Its principal geographic focus is North America. Management targets 3% quarterly growth in limited partnership distributions through continued dropdowns from its sponsors.
The company reported top-line numbers that beat expectations last time out, although earnings per share was slightly less than expected. The stock remains a favorite at JPMorgan and is a great way for aggressive accounts to play the sector.
8Point3 investors are paid a strong 7.36% distribution. The JPMorgan price objective for the shares is $16, which compares with the Wall Street consensus figure of $15. The stock traded early Thursday at $14.45 a share.
This is a solid play on China, as well as another top stock for aggressive accounts to consider. JinkoSolar Holding Co. Ltd. (NYSE: JKS) has built a vertically integrated solar power product…