Altus Power price target raised to $10 from $8 at B. Riley

B. Riley raised the firm’s price target on Altus Power to $10 from $8 and keeps a Buy rating on the shares. The analyst expects the challenges of the U.S. residential market amid higher interest rates and a significant decline in California to remain the key theme when solar and storage companies report Q4 earnings. Investors in the space have already written off second half of 2023 and first half of 2024 for the slowdown and reset expectations at the lower demand run-rate, though there are still debates as to how low that demand rate is, the analyst tells investors in a research note. The firm does not believe companies in the space will have enough visibility on a pickup in the second half of 2024 in order to provide confidence at this stage, given Q1 seasonality makes the current demand and sell-through rates less meaningful. Riley continues to advocate positioning towards solar and storage ownership models over equipment suppliers, utility and commercial sector exposure over residential sector exposure.