According to Wells Fargo, the Silicon Valley Bank crisis is creating attractive entry points for residential solar stocks Sunrun and Sunnova Energy International. “Weakness in solar due to the SVB crisis is a buying opportunity,” analyst Michael Blum told clients in a note. While fears of contagion risks have led to pullbacks from regional banks, the Fed is more likely to pause rate hikes, That’s a boon for solar stocks. A 50 basis point reduction in the long-run discount rate to 7% to 8% means more upside for Sunrun and Sunnova, according to analysts. “The silver lining of the banking problems is a 30 basis point drop in interest rates (10-year Treasury yields fell from 4.0% to 3.7%). Also, given the potential banking crisis, the Fed may pause rate hikes, which would reduce resi- The financing cost of the solar name, which was the key driver of performance,” the analyst said. Meanwhile, while the consultant predicts that the U.S. residential solar industry could decline by 2% in 2023, Blum predicts that the largest solar companies could meet their 2023 target by expanding their market share by just 8%. “In our view, market share gains will be driven by long-tail installers/dealers migrating to the ‘Big Three’ to take advantage of: (1) a shift from loans to leases/PPAs, and (2) higher post-NEM batteries Attach rate 3.0,” read the description. Shares of Sunrun and Sunnova are down 20% and 16.4%, respectively, in 2023. Blum’s $29 price target on Sunrun implies upside of 42% from Tuesday’s close. His $23 Sunnova target also points to gains of 42.4%. RUN 1D mountain Sunrun shares 1-day — CNBC’s Michael Bloom contributed to this report.