(Bloomberg) -- U.S. solar stocks enjoyed their best day in almost a month, with the rooftop installer Vivint Solar Inc. climbing the most since June.
Exactly what’s behind Tuesday’s rally is debatable. Here are some possibilities:
- Optimism that some U.S. companies will win exemptions from import tariffs. SunPower Corp. was among the companies seeking to be excluded from the trade duties, and Garvin Jabusch, chief investment officer at Green Alpha Advisors, said by email Tuesday that SunPower’s case is “particularly strong.” The deadline to file was March 16.
- The possibility of lower tariffs would mean lower panel prices, Jabusch said. That would be good news for installers like Vivint and Sunrun Inc.
- A strong sales forecast from Canadian Solar Inc. The biggest North American panel maker said Monday that revenue this quarter may double from a year ago. After giving the market time to digest the details, the forecast may have boosted competitors Tuesday, Jabusch said.
- International demand. Canadian Solar also stressed sales in Latin America, Australia and the Middle East, indicating that trade barriers in the U.S. may be offset by increased revenue elsewhere.
Vivint rose 10 percent to $3.70 at the close in New York, the biggest gain in nine months. SunPower, the second-biggest U.S. panel maker, rose 7.6 percent, the most since January.
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