In a recent announcement, Jefferies analysts have launched their alternative-energy stock coverage and assigned buy ratings to the stocks of First Solar Inc. Meanwhile, SunPower Corp. has been rated as hold. The analysts believe that companies with exposure to utility-scale projects, a strong backlog, and robust balance sheets present better risk/reward opportunities in times of uncertainty.

The sector's future prospects are expected to be influenced by several catalysts next year, including gaining more clarity on provisions outlined in the Inflation Reduction Act and the stabilization of interest rates. However, the alt-energy industry, specifically solar-power stocks, has underperformed significantly in the current year due to macroeconomic factors such as higher interest rates and regulatory changes in states like California, which have extended the payoff times for solar power installations.

Of the stocks given a buy rating, First Solar emerges as a top pick according to the analysts. The company's strong backlog, supportive pricing in a declining pricing environment, and robust balance sheet align with the analysts' key criteria for investment. Additionally, First Solar is projected to witness an increase in gross margins from 18% this year to approximately 25% by 2025.

The initiation of coverage by Jefferies and the buy rating given to First Solar stocks indicate the firm's optimism in the company's future prospects. The analysts' positive assessment is based on strong fundamentals, anticipated growth in gross margins, and the company's ability to adapt to changing market dynamics.

However, the analysts have assigned a hold rating to SunPower Corp. While specific reasons for this rating were not provided in the available information, it suggests a cautious outlook or a belief that SunPower Corp. may face challenges in the near term.

Overall, the alternative-energy sector, especially solar-power stocks, has faced headwinds this year. Investors are eagerly awaiting potential positive developments such as the Inflation Reduction Act provisions and stabilization of interest rates, which could reignite growth and interest in these stocks.

As the market looks to the future, investors will closely monitor the performance of First Solar Inc. and other companies in the alternative-energy space. The buy ratings assigned by Jefferies analysts reflect confidence in the long-term potential of the industry, signaling a renewed interest in alternative energy and its ability to contribute to a sustainable future.