Truist names top clean energy stocks to watch ahead of Q3 earnings season

Truist analyst Christopher Souther reiterated Buy ratings on five clean energy stocks ahead of the third quarter earnings season, citing a favorable demand backdrop as the U.S. is forecast to add approximately 38 GWac of utility-scale solar annually through 2030, alongside 26 GW of storage capacity each year. With investor focus centered on execution and the ability to convert growing opportunities into revenue growth and margin expansion, Souther highlighted companies positioned to deliver against the demand backdrop while navigating policy changes and supply chain challenges.

1. Clearway Energy Inc (NYSE:CWEN) - Truist maintains a Buy rating with a $40 price target. The firm expects third quarter revenue of $522 million, up 22% year-over-year and ahead of consensus estimates of $511 million. CWEN recently closed financing and started construction on the 650 MW Swan Energy Center solar project in Missouri, backed by a 20-year power purchase agreement and expected to reach commercial operations in 2028. Truist sees upside to the company's 2030 cash available for distribution per share target of $2.90 to $3.10, with its estimate at $3.18. The analyst expects another year of 5% to 8% growth extending into 2031, supported by the development pipeline and electricity demand supporting pricing to offset higher interest expenses.

2. Enlight Renewable Energy Ltd (NASDAQ:ENLT) - Truist reiterates a Buy rating with a $104 price target. The firm expects third quarter revenue to grow 27% year-over-year to $210 million, supported by a 16% increase in generation to 1,498 GWh and benefits from pricing and Israeli electricity trading revenue. ENLT is scheduled to report earnings on November 3. The analyst views ENLT as a beneficiary of global electricity demand with a strong track record of execution across Israel, Europe, and North America. Key focus areas include progress on the development pipeline and the ability to offset higher borrowing costs with power purchase agreement pricing.

3. First Solar Inc (NASDAQ:FSLR) - Truist recently upgraded the stock to Buy with a $270 price target, citing that Section 232 tariffs materially improve long-term pricing visibility by establishing an effective import floor. The Section 232 minimum import price plus tariff of $0.44 per watt is well above FSLR's pre-ruling bookings in the approximately $0.36 per watt range. The firm expects third quarter earnings per share of $4.33, below consensus of $4.66, on revenue falling 26% year-over-year. Truist expects pricing support in the mid-to-high $0.30 per watt range for FSLR modules even with competition from new U.S. capacity.

4. Nextpower Inc (NASDAQ:NXT) - Truist maintains a Buy rating with a $145 price target. The firm expects second quarter fiscal 2027 revenue of $1.10 billion, 5% ahead of consensus and up 22% year-over-year, including approximately $82.5 million from the Prevalon acquisition. Investors are focused on the upcoming Capital Markets Day on November 16, where an update to fiscal 2030 guidance is expected. Key areas of focus include integration progress, cross-selling opportunities, and margin implications of a broader product portfolio. The analyst sees NXT as a high quality name with an expanding opportunity set supported by inverter and battery storage acquisitions.

5. Eos Energy Enterprises Inc (NASDAQ:EOSE) - Truist reiterates a Buy rating with a $7 price target. Following preliminary third quarter results, the company reported revenue of $82 million to $83 million, up 170% year-over-year, while adjusted gross margin improved to approximately negative 46% from negative 62% last quarter. Shipments increased roughly 23% quarter-over-quarter as Line 2 at Thorn Hill continued to scale. Key topics include throughput improvements, backlog conversion, deployments under the FPUSA partnership, and the outlook for continued margin expansion as production volumes scale. Truist models positive adjusted gross margin by mid-2027 and positive adjusted EBITDA margin in 2028.