Active Solar July update

Active Solar recovered in July (+7%), but is still close to its lowest level in 4 years. Only a few Q2 results have been released; as expected, the results are rather good and confirm an increase in volumes for the year's second half.

Our assessment of the pros and cons of a strong short-term rally in the solar stocks in the May newsletter is still valid. And investors should remember that solar stocks are mainly driven by sentiment, as detailed in the June newsletter.

Q2 results and updated guidance for H2 could provide a solid base for a change in sentiment; we will report on this in a month’s time.

In the meantime, we would like to point out that the portfolio is currently very cheap despite a “flat” year in terms of revenues and EPS growth. Looking at the Bloomberg analysts’ consensus, it is safe to say that 2024 is a “transition year” at the bottom of a cycle (in terms of margins) before profits start to rise significantly in 2025:

Pascal Rochat commented on the performance and the solar sector in a webinar on 24th July 2024. Here is the link to the recording (20 minutes): https://activenf.ch/en/active-solar