Silicon Valley Bank’s crisis creates attractive entry points in home solar stocks Sunrun and Sunnova Energy International, according to Wells Fargo. “Weakness in resi-solar driven by the SVB crisis is a buying opportunity,” analyst Michael Blum said to clients in a note. While fears of contagion risk have caused regional banks to retreat, the greater likelihood of a pause in interest rate hikes from the Federal Reserve is a boon for solar stocks. According to the analyst, a 50 basis point reduction in the long-term discount rate from 7% to 8% means more for Sunrun and Sunnova. “The silver lining of the bank’s problem is that interest rates have fallen by 30 bps (the 10-year treasury yield fell to 3.7% from 4.0%). , which will reduce the cost of financing for the name resi-solar, the main driver of performance,” said the analyst. At the same time, while consultants expect the US residential solar sector to decline by 2% in 2023, Blum predicts that the largest solar companies can achieve their 2023 guidance by increasing their market share by only 8%. “In our opinion, market share gains will be driven by tail installers/dealers migrating to the “big 3” to take advantage of: (1) the shift to rent/PPA from loans and (2) higher battery installation rates after NEM 3.0 ,” the note read. Sunrun and Sunnova shares are down 20% and 16.4% in 2023. Blum’s $29 price target on Sunrun represents a 42% upside from Tuesday’s close. Target Sunnova $ 23 points to advance 42.4% as well. RUN 1D mountain Sunrun show 1 day — CNBC’s Michael Bloom contributed to this report.