Solarfun Power Holdings cut to sell at Goldman Sachs

Shares of Solarfun Power Holdings Co. Ltd. fell Thursday after the China-based solar cell maker was downgraded to sell from neutral at Goldman Sachs, which said it expects to see rising downward pressure on the bottom line and growing financial pressure.

The stock opened 6.5% down at $24.70 on volume of 838,000 shares.

"We believe the 53.8% run-up in Solarfun's share price since last week is mainly fueled by anticipation of strong first-quarter earnings," analyst Cheryl Tang said in a note to clients.

"Though Solarfun raised 2008 shipment guidance and its market presence has been improving ... we believe that, given muted future top-line growth and looming margin and cash flow pressure, its premium valuation is unwarranted."

Labels: downgrade, Goldman Sachs, Solarfun, solarstocks, SOLF

posted by Ertai at 11:27 AM