North America Alternative Energy Equipment & Services: Stored Potential, Ready to Discharge; 2Q Preview

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North America Alternative Energy Equipment & Services: Stored Potential, Ready to Discharge; 2Q Preview

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22 Jul 2026 07:24:16 ET │ 72 pages

North America Alternative Energy

Equipment & Services

Stored Potential, Ready to Discharge; 2Q Preview

Vikram Bagri AC

CITI'S TAKE +1-212-816-4506

vikram.bagri@citi.com

We upgrade three storage-focused names including FLNC to Buy/High Risk

with a $24/sh PT, NRGV to Buy/High Risk with a $5/sh PT, and CSIQ to Theodore Giletti, CFA

Neutral/High Risk with a $18/sh PT. While we remain constructive on names +1-212-816-3835

exposed to storage, utility-scale solar, and AI build-out, companies with theodore.giletti@citi.com

residential exposure continue to face headwinds. Hurricane-related outage

Vignesh Gundaactivity is down meaningfully Y/Y, while U.S. residential solar installs appear

to be approaching new lows in 3Q. Our app data indicates a ~47% Q/Q +1-212-816-9667

increase in EU residential solar installs in 2Q; however, installation activity vignesh.gunda@citi.com

has slowed materially QTD.

Favorable Setup — The pullback in NXT shares provides an attractive entry point

with strong likelihood of another beat in the quarter. We see potential for BE to raise

guidance, alleviate Scandium concerns, and announce an increase in backlog. While

maintaining Sell/High Risk, we believe the set up for SEDG is strong with the

potential to beat 3Q expectations. However, 4Q and FY27 will likely be challenging,

and valuation remains stretched. FLNC should meet F3Q revenue guidance but miss

the consensus. Despite that, we believe a potential hyperscaler order and larger

pipeline could overshadow unreasonable consensus expectations. Finally, we

believe storage business is growing at an impressive pace and the company could