Sunrun Inc (NASDAQ: RUN) has been a major disappointment for investors in recent weeks, but a senior analyst at UBS remains convinced that the ongoing sell-off in this solar stock has gone a bit too far.

According to Jon Windham, Sunrun’s stock price crash has created an opportunity to load up on a clean energy name that could weather the risks associated with President Trump’s new budget bill.

Note that Sunrun stock, despite the aforementioned hit, remains up some 30% versus its YTD low.

UBS sees upside in Sunrun stock to $12

Windham reiterated his “buy” rating on Sunrun shares this morning but lowered the price target to $12 to reflect a sector headwind linked to the House passing the “One Big Beautiful Bill Act” last week.

Investors have been bailing on clean energy stocks under the Trump administration this year as its new budget bill proposes removing significant tax credits for solar companies by the end of 2025.

These investment tax credits under the Biden-era Inflation Reduction Act (IRA) incentivized homeowners to install solar panels in pursuit of lower electricity costs.

That’s why the Invesco Solar ETF has lost a little under 15% year-to-date.

However, RUN shares could still navigate this storm and soar up to 75% from here, said the UBS analyst in his latest note to clients.

How may RUN shares navigate the new budget bill?

In his report, Jon Windham said his downwardly revised price target on Sunrun stock reflects the potential risk of the White House removing all federal tax credits for residential solar.

However, he maintained a positive view on the stock, noting that Sunrun could mitigate the impact of such regulatory headwinds through state-level incentives and expansion into other segments, including commercial, industrial, and community solar markets.

Additionally, Sunrun Inc could adjust its Power Purchase Agreements as well to better adapt to the regulatory shift, the UBS analyst argued in his research note.

Note that RUN shares do not pay a dividend at the time of writing.

Sunrun reported strong financials for its Q1

Windham also signalled the possibility of the US Senate reversing its stance on the aforementioned bill in his report as well.

He’s positive on RUN shares on the company’s “underlying $2.6 billion portfolio of contracted net earning assets.”

Moreover, the analyst also sees “potential upside scenarios beyond the US budget bill”.

Sunrun stock may be worth owning for continued strength in its financials.

Earlier in May, the Nasdaq-listed firm reported $504 million in revenue and earnings of 20 cents per share for its fiscal first quarter.

That handily beat analyst expectations, which had projected around $494 million in revenue and a loss of 22 cents per share for the clean energy firm.

That’s why the consensus rating on RUN remains an “overweight” at writing.

The post Looking for 75% return within a year? Buy this solar stock today appeared first on Invezz

Intel has announced plans to lower its global headcount by more than 20% under the leadership of Lip-Bu Tan, who has been at the helm for a couple of months only.

In its latest reported quarter, the semiconductor giant came in ahead of Street estimates on both the top and bottom line as well. Still, Intel stock remains in shambles.

And it may continue to struggle until the company’s new chief executive announces a big change that markets have been anticipating for a while now, said Susquehanna analyst Christopher Rolland in a recent CNBC interview.

Intel stock could benefit from a breakup

According to Christopher Rolland, Intel is “dead money in its current strategic form.”

However, a potential split of its business – a strategic move that separates its manufacturing unit from production divisions could unlock significant value for shareholders, the analyst argued.

Rolland sees it as a “viable path forward” for Intel, particularly because the Trump administration has been fully committed to onshoring production this year.

Top it off with the firm’s 18A process node that’s gaining traction lately, and you have yourself a semiconductor stock that “may have a chance” in keeping relevant in an increasingly AI-centred global market, according to the Susquehanna analyst.

Note that Intel stock currently pays a dividend yield of 2.57%, which makes it a bit more attractive to own in 2025.

18A success could save INTC shares in 2025

Intel’s aforementioned manufacturing process is reportedly facing initial challenges but has started gaining interest from a number of tech companies.  

There have been rumours of potential large-scale foundry deals with companies like Microsoft, and talks are also underway with Google.

Intel is aiming for high-volume production in the second half of 2025. Provided that it successfully delivers on that commitment, hyperscalers could increasingly turn to INTC, given the federal push to manufacturing in the US.

This may help remove a major overhang from Intel shares – the lack of a big customer. Note that the semiconductor stock is currently down some 30% versus its year-to-date high.

Is it worth investing in Intel this year?

Until Intel announces the separation of its two core businesses and ramps up its 18A process, however, INTC stock is much like “dead money”, as per the Susquehanna analyst.

Christopher Rolland currently has a “neutral” rating on Intel shares also because the likes of AMD are stealing its market share, and the signs of a pick-up in PC demand the company talked about on its Q1 earnings call may only have been a pull forward due to tariffs.   

Other Wall Street analysts agree with Rolland’s neutral rating on Intel stock as well. However, the mean target of about $24 still indicates potential upside of more than 20% from here.  

The post Intel stock dubbed ‘dead money’, analyst reveals a ‘viable path forward for INTC appeared first on Invezz

German stocks have been on a tear in 2025, vastly outperforming both their European peers and U.S. counterparts.

The DAX index, Germany’s flagship benchmark, is up over 20% year-to-date, outshining the broader Stoxx 600, which has posted a more modest 8% gain.

In stark contrast, the S&P 500 in the U.S. has been hovering just above flatline for the year, underlining the scale of outperformance coming out of Europe’s largest economy.

Leading the charge in Germany is defense company Rheinmetall, which has seen its stock soar more than 200% amid a spike in defense spending by the German government.

The rally is not isolated to defense: industrials, utilities, and even segments exposed to artificial intelligence have all contributed to the market’s strength.

Why are German stocks flying high in 2025?

According to Laura Cooper, Global Investment Strategist at Nuveen, a major catalyst has been Germany’s aggressive fiscal stimulus, announced in March.

Speaking with CNBC, she noted that investors have been pricing in both defense and infrastructure spending, which has fueled the DAX’s double-digit surge.

“It’s quite remarkable to see the significant double-digit gains in the German DAX,” Cooper said in the interview, adding “this is largely based on that game-changing fiscal stimulus … tilted more towards those defense stocks.”

The DAX’s sector composition has also helped it outperform. Its heavy allocation to industrials and utilities aligns well with the current macro backdrop, especially as infrastructure upgrades and AI applications gather momentum globally.

Cooper also pointed to artificial intelligence as a growing tailwind for these sectors, particularly as Europe ramps up digitization.

Is it time to take profit in German stocks?

With such sharp gains in a short span, investors are beginning to question whether now is the time to lock in profits.

While Cooper doesn’t advocate exiting the market entirely, she does warn of stretched valuations, especially in defense.

“I don’t think necessarily this is a time for profit-taking,” she told CNBC in an interview today. “But we are going to see valuations come back into focus. The German DAX is trading at about 15 or 16 times its earnings, and that is stretched on a historical basis,” Cooper added.

Rather than selling out, Cooper suggests broadening exposure within Europe and perhaps even revisiting US equities, where strong tech earnings are starting to reawaken investor interest. The European rally may continue, she said, but gains are likely to be “more tepid” from here.

Investors should remain cautious, balancing optimism with prudent risk management as market dynamics continue to evolve.

Staying diversified and closely monitoring valuation shifts will be key to navigating this evolving landscape successfully.

In short, German stocks may still have room to run—but the easy money might already be behind us.

The post Is it time to pull out of high-flying German stocks? appeared first on Invezz

Gap Inc (NYSE: GAP) shares plunged some 20% on Friday, rattled by concerns over tariffs and their potential impact on profit margins.

However, according to Matt Boss, a retail analyst at JPMorgan and an Extel Analyst Hall of Famer, the market is overreacting—and there’s a compelling case to buy the dip in Gap stock.

Why did Gap shares fall?

Today’s selloff in GAP shares was triggered by investor fears over an estimated $150 million in incremental tariffs hitting Gap and its brands like Old Navy.

This tariff burden has been factored into the stock price at a low double-digit multiple, equating to roughly $5 to $6 in equity value removed from the shares, Boss explained.

Despite these concerns, Gap reported solid fundamentals in its latest quarterly results, with same-store sales up mid-single digits at core Gap and low single digits at Old Navy.

The company also outlined an expected 8% to 10% multi-year bottom-line growth driven by steady sales gains.

Where the market is wrong

Matt Boss emphasized that tariffs are far from a new issue for Gap stock and its retail peers, many of whom have been aggressively reducing their exposure to China, traditionally a major source of tariff risk.

“Gap will exit this year with only 3% of its sourcing coming from China,” the JPM analyst revealed in a CNBC interview today, adding “on average, our group has a high single-digit China impact today, down from 20% in 2019.”

Retailers are mitigating tariff pressure through diversified sourcing, strategic pricing adjustments, and operational efficiencies.

Some companies are cautiously implementing low to mid-single-digit price increases, while others are waiting to see the final tariff rates before passing costs onto consumers.

JPMorgan sees opportunity

Despite recent volatility, Boss remains optimistic on Gap’s turnaround story and rates the stock as overweight.

He believes fair value lies in the mid-$30s for GAP shares, well above current prices, contingent on management’s execution of its plan.

Pullbacks like the recent selloff, he said, create compelling buying opportunities for investors willing to look beyond short-term tariff noise.

While tariffs have rattled the market, the fundamental outlook for Gap stock and other well-managed retailers remains intact.

As Matt Boss notes, investors should see the recent selloff in GAP not as a warning sign but as a buying opportunity in a sector undergoing selective, durable recovery.

Other Wall Street analysts agree with JPM’s view on GAP shares as well, given the consensus rating on the multinational clothing and accessories retailer currently sits at “overweight”.

Analysts have an average price target of a little over $27 on Gap Inc, which indicates potential for a more than 20% upside from current levels.

The post Analyst explains why ‘market is wrong’ in selling Gap stock on tariff warning appeared first on Invezz

U.S. equities may be poised for a significant rally in the second half of 2025, according to Chris Harvey, head of equity strategy at Wells Fargo Securities.

Despite persistent trade tensions and policy uncertainty, Harvey believes that much of the tariff risk is already priced into the market – perhaps even overstated – and that economic fundamentals remain resilient.

Wells Fargo still sees S&P 500 surpassing 7,000 level by year end

Speaking with CNBC, Harvey reiterated his bold year-end S&P 500 target of 7,070, the highest on Wall Street. This implies an upside of nearly 20% from current levels.

The Wells Fargo analyst sees recent market volatility as part of a broader constructive trend.

“We’re making progress on trade and tariff. We’ll continue to make progress,” he noted in the said interview, adding “we’ll take a step back every once in a while, but Trump administration appears intent on pushing the ball forward.”

One of the key factors supporting Harvey’s optimism is the Federal Reserve’s stance on interest rates.

He pointed to recent comments by Fed Governor Christopher Waller, who suggested that if tariffs remain in the 10% range, the Fed could justify cutting interest rates to offset the drag on growth.

According to the Wells Fargo equity strategist, “that’s where we think tariffs end up, around 10-12%. We’re getting more comfortable with that belief.”

Tariff revenue could help the US narrow its fiscal deficit

Harvey sees modest tariffs in the aforementioned range distributing costs relatively evenly among importers, corporations, and consumers, with limited economic disruption.

Meanwhile, the revenue generated could help narrow the fiscal deficit. “That’s a real positive, a real constructive thing,” he said, underscoring the potential for increased government revenue to become a stabilizing force.

Beyond China, the Wells Fargo strategist believes trade deals with other key economies like India, Japan, and the European Union may carry even more strategic importance.

We’re in the process of disintermediating China. We’re telling our allies: if you want to benefit from this shift, play ball with us.

He pointed to earnings calls where companies are increasingly citing efforts to reduce exposure to China by relocating supply chains and diversifying manufacturing bases.

This, according to Chris Harvey, indicates that the US strategy is gaining traction and could support broader economic resilience.

What could offset Wells Fargo’s bullish view on US stocks?

On the flip side, Harvey warned that uncertainty remains the biggest risk to his forecast. If there is not enough clarity on trade by mid-summer, it could begin to weigh on corporate confidence and hiring.

If we’re here in June or July and still saying, ‘We’re not sure,’ then people may start resizing their workforce. That’s when things could start to fall apart.

Even so, the strategist remains bullish that by July, the market could shift its focus to pro-growth themes such as potential tax cuts and fiscal stimulus.

If significant trade progress is achieved, with deals involving India or Japan, for example, investors may begin to look past temporary economic softness and toward a more optimistic 2026.

The post US stocks could still rally 20% in the second half of 2025: find out more appeared first on Invezz