Needham & Company Downgrades SunPower Corp. (SPWRA)
Needham analyst says, "We are downgrading SunPower to Hold due to increased downside risk to estimates and currency headwinds. We see increased risk surrounding SunPower's expanded European pipeline of systems business due to the possibility of additional subsidy cuts, currency headwinds and growing macro concerns in Europe. Furthermore, SunPower continues to face pricing pressure despite strong near-term demand. With a lack of near term catalysts, we expect SPWRA shares to remain range bound. Therefore, we recommend investors wait on the sideline at this time."
SunPower Corporation (SPWRA) is down -4% for today.
Labels: downgrade, solar analysis, Solar Stocks, SPWRA, SunPower Corp
Auriga Upgrades First Solar
Auriga upgrades First Solar (Nasdaq: FSLR) from Hold to Buy, saying the recent sell-off creates an attractive entry point.
The firm said even with their reduced reduced estimates, they forecast 21% upside to their current price target of $138.
Analyst Mark Bachman said, "We attribute the recent decline in share price to the depreciation of the Euro relative to the Dollar, and not because of fundamental change with regard to supply/demand within the solar industry. With the recent announcement of FSLR pushing project business into 2011, our model recognizes that more module sales will be denominated in Euros in 2010. That said, we also recognize and credit FSLR's aggressive currency hedging activities and ~15% natural hedge from manufacturing in Germany to buffer the effect of a weakened Euro. Our new price target of $138 is 20X our 2011 EPS estimate of $6.89."
Source: StreetInsider
Labels: First Solar Inc, FSLR, solar analysis, Solar Stocks
Wells Fargo covering Solar Stocks
An analyst at Wells Fargo initiated coverage on a group of stocks in the Solar space earlier today:
ReneSola (NYSE: SOL) with an Outperform rating and a $9.50-$12 valuation range. Calls ReneSola a "big beneficiary of 2010 demand trends," mainly wafer pricing, margins and protection from its OEM segment if the market turns lower. Shares of ReneSola are down more than 5% today, last trading around $7.06.
Solarfun (Nasdaq: SOLF) with an Outperform rating and a $10-$12.50 valuation range. The firm notes that the company has been historically unappreciated, however, "with a new management team and an improving cost structure, we believe SOLF is leaving the penalty box." Wells Fargo argues that Solarfun has "one of the best risk-reward profiles in the group..." The firm expects Solarfun to report FY10 EPS of $0.92. Solarfun shares are one of the few solar stocks holding onto positive territory today, last trading up 0.5% to $8.39.
Yingli Green Energy (NYSE: YGE) with a Market Perform rating and a $11.50-$14.50 valuation range. The firm said it would like to be more positive on Yingli given that the company boasts a "industry-leading cost structure," however, the FY10 outlook looks to be "already among the most optimistic in the group..." Wells Fargo also believes that the recent polysilicon plant adds risk and that the balance sheet needs cleaning-up. The firm is currently looking for Yingli to report FY10 EPS of $0.94. Shares of Yingli are down 3.1% to $11.87.
Canadian Solar (Nasdaq: CSIQ) with a Market Perform rating and a $18-$23 valuation range. Wells Fargo says exchange rate headwinds and firmer input pricing could be issues for Canadian Solar in the first half of this year. "While H2 comparisons and earnings improvement are pluses, revenue growth and margin structure remain in flux, forcing the company to choose between market share and profits." The firm is looking for Canadian Solar to report FY10 EPS of $1.34. CSIQ shares are up 0.3% to $16.90 today.
Suntech (NYSE: STP) with a Market Perform rating and a $11-$14 valuation range. Wells says "Suntech has one of the best brands in the industry, but we believe the company needs to revamp its cost structure and improve corporate governance, notably its relationship with Global Solar Fund (GSF); Suntech has a high ownership stake in this entity but does not consolidate results. Valuation of 17x 2010E EPS vs. the peer group near 15x leaves little room for stock appreciation, in our view." Shares of Suntech are down 3.2% to $12.62 today.
Source: streetinsider.com
Labels: CSIQ, SOL, solar analysis, Solar Stocks, SOLF, STP, YGE
First Solar Upgrade
First Solar, Inc. (NASDAQ:FSLR) is up more than 3% after this upgrade:
Earlier this morning Battle Road Research upgraded shares of First Solar (FSLR) to Buy from Hold and set a $150 price target.
In its note, Battle Road says negative catalysts are in the past and “expectations are too low for 2010.” (First Solar stock is down 9% over the last 12 months, compared with a 49% gain for the Nasdaq.) The stock has been under pressure over concerns about subsidy cuts in Germany, First Solar’s primary market.
Thanks to a process that avoids polysilicon, First Solar continues to have gross margins near 50%. “The company continued to improve its cost per watt and efficiency in the fourth quarter, cementing its cost advantage,” Battle Road says.
Uncertainty related to the European subsidies known as feed-in-tariffs “have been fully absorbed by the stocks.”
Despite concerns, volumes for the first three and half months of 2010 have exceeded expectations. Battle Road notes that industry estimates call for worldwide installations totalling eight to 13 gigawatts in 2010, up from 6.4 gigawatts in 2009.
Shares of First Solar are up 3.8%, or $4.75, today to $128.84.
source: Barrons Blogs
Labels: First Solar Inc, FSLR, solar analysis, Solar Stocks
Suntech Power Holdings Co., Ltd. (STP) Overweight Rating
Analyst Vishal Shah at Barclays Capital (ADR) (NYSE: BCS) has maintained a 1-Overweight rating for Suntech Power Holdings Co., Ltd. (ADR) (NYSE: STP).
Barclays estimates a margin of 18.7% at Suntech for the fourth-quarter of 2009, and 19.3% for the fourth-quarter of 2010. Barclays expects the company’s poly procurement costs to decrease from 80/kg in 2009 to 50/kg in 2010.
The recent checks conducted by Barclays Capital suggests positive customer feedback on the company’s Pluto technology. The technology has potential to drive up margins by 10%, according to Barclays.
Barclays Capital has set a price target of $20 for Suntech Power Holdings Co., Ltd.
sourceLabels: solar analysis, Solar Stocks, STP, Suntech Power
Solar Stocks Upgrades
Some upgrades for Solar Stocks today:
SunPower (Nasdaq: SPWRA) raised from Hold to Buy. Price target lowered from $30 to $29. Shares are up 2.5% to $21.75 this morning. The firm's new target on SunPower suggests potential upside of 33%.
Suntech (NYSE: STP) raised from Underperform to Hold with a $12 target. Stock is flat in the pre-market session at $13.38.
Solarfun (Nasdaq: SOLF) raised from Underperform to Hold with a $7 target. Solarfun shares are up 0.4% to $7.85. Price target represents possible downside of about 10%.
China Sunergy (Nasdaq: CSUN) raised from Underperform to Hold. Price target raised from $4 to $4.50. China Sunergy is up nearly 4% this morning, last trading at $4.35. Jefferies new target suggests potential upside of about 3%.
Labels: China Sunenergy, CSUN, solar analysis, Solar Stocks, Solarfun, SOLF, SPWRA, STP, SunPower Corp, Suntech Power
Solar Downgrades
Suntech Power Holdings Co., Ltd. (ADR) (NYSE: STP) gained 1.77% to $13.25 despite being downgraded by Broadpoint AmTech Research to Sell from Neutral at a price target of $10. The 52-week trading range for STP is $5.09 - $21.38. Suntech Power Holdings closed at $13.02 in the previous trading session.
Labels: downgrade, solar analysis, Solar Stocks, STP, Suntech Power
First Solar is Top Growth Stock for 2010
First Solar, Inc. (FSLR) has been selected by thestockmasters.com has one of the top growth stocks for 2010:
First Solar (FSLR)
NFY (Next Fiscal Year) Revenue Growth: 32.78%
I have nothing new to add to the Solar Energy argument. However, I will say that FSLR is a well run company and Wall Street expects Revenue to grow 32.78% in 2010. That’s pretty big for a company that already generates $1.86B on an annual basis. Just looks at the fundamentals on FSLR, Profit Margins are generous, Revenue and Earnings are growing like nobody’s business. First Solar is the kingpin and best of breed of Solar Stocks. This week they released news of a major capacity expansion. With such a strong financial profile, it's no surprise that First Solar is comfortable expanding its current capacity by nearly 50%.
www.thestockmasters.comLabels: First Solar Inc, FSLR, solar analysis, Solar Stocks, Solar Technology
Broadpoint.AmTech Maintains a 'Buy' on First Solar (FSLR)
Broadpoint analyst says, "Following updated cost reduction guidance from poly-based module producers last week, we are reducing our FSLR 2010 estimates to better reflect a more competitive landscape in 2H10 (namely TSL projecting $0.70/w processing cost). We still view FSLR as the best positioned solar company industry-wide, and see visibility into a return to capacity expansion/earnings growth in 2011 as a key catalyst for the stock...We are revising FY10 revenue and EPS from $2.6B and $8.86 to $2.4B/$7.11 and introducing FY11 revenue and EPS of $3.1B and $8.96. While we are essentially pushing out our earnings number one year, we remain constructive on FSLR shares given the company's superior margin structure, return on capital metrics, and our belief investors will return to shares as the capacity ramp in 2H11 becomes more visible...While we are disappointed by FSLR's underperformance YTD, we see the set-up as improving into 1H10 following a significant margin reset, coupled with capacity expansions in the out-year. While FSLR will prove to be a massive share gainer in 2009, the stock has underperformed given the outlook for industry lagging earnings growth in 2010. We believe the stock will likely begin to act better in 1H10 as FSLR is set to grow in-line or better than the group in 2011."
Source: Streetinsider.com
Labels: First Solar Inc, FSLR, solar analysis, Solar Stocks
Soleil Upgrades Suntech Power Holdings (STP) to Hold
Soleil upgrades Suntech Power Holdings (NYSE: STP) from Sell to Hold, price target increased to $13.50
Soleil analyst says, "Q3 results - 16 cents on revenues of $473mm - were above consensus expectations (8 cents on revenues of $430mm). Strength was driven by strong growth in shipments - up 67% q/q. However, EPS was boosted by foreign exchange gain (6 cent benefit) and zero tax rate (3 cent benefit). We are raising our 2010 estimate from 13 cents per share to 45 cents per share due to higher shipment estimate (1050 MW vs. prior estimate of 900 MW)."
Labels: solar analysis, Solar Stocks, STP, Suntech Power
Solar Earnings and Updates
Solar updates
JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) surged up by 6.50% at $4.39 on huge volume of 7.60 million shares after JASO announced quarterly revenue of $193.3 million, beating the analysts estimates of $136.2 million. For the fourth quarter, JA Solar expects shipments of 170 MW to 200 MW and for the current financial year, the company expects to announce shipments of around 448 – 478 MW. JASO gained over 18% in the last five trading sessions.
Evergreen Solar, Inc. (NASDAQ: ESLR) plummeted 2.06% or $0.03 to $1.42 on 299K shares. So far this year, Evergreen Solar declined by around 55%.
Akeena Solar, Inc. (NASDAQ: AKNS) decreased $0.010 or 1.02% to $0.950. In the last six months, AKNS plunged by 33%. The 52 week trading range for the stockis $0.58 - $3.07.
GT Solar International, Inc. (NASDAQ: SOLR) tumbled 10% to $4.99 on 550K shares after GT Solar was downgraded by Piper Jaffray to Underweight from Neutral.
First Solar, Inc. (NASDAQ: FSLR) gained 2.14% at $122.02 on 695K share. The 52 week trading range for the stock is $85.28 - $207.51. So far, FSLR is down 11% in the current year.
Source: benzinga.com
Labels: solar analysis, Solar News, Solar Stocks
SunPower Corporation Upgraded
SunPower Corporation (SPWRA) was upgraded by some analysts, and moved yesterday into new highs.
Macquarie upgraded SPWRA from Underperform to Neutral, and raised price target from $23.50 to $30.
Looking at the chart, there is a price resistance around $34, and if today we get to close above that price, we could be at the beginning of another bullish rally for this solar stock.
With Crude Oil getting very close to $80, Solar Stocks might have enough momentum to keep the current short-term trend up. Most Solar Stocks are now pointing up such as First Solar (FSLR) and Suntech Power (STP), etc..
In my opinion it's the perfect time to jump in now, for a quick trade, as long as today's movement in Solars keeps going up.
Labels: Bullish, First Solar Inc, solar analysis, solar charts, Solar Stocks, SPWRA, SunPower Corp, Suntech Power
Q-Cells SE
With the US Markets closed today, we take a look at the biggest European Solar Stock, Q-Cells.
The chart shows this solar stock is still lagging behind the rest of the market, but cheap considering the size of the company, and the fact that Q-Cells SE was/is the single largest producer of solar cells in 2007 according to industry data.
With an annual production of 370 megawatts (MW), this could be the only Solar Stock that is still cheap and a good play for the mid to long term investing.
And one of the most fundamentally solid companies in the Solar Sector.
Q-Cells SE, formerly Q-Cells AG, is a Germany-based company active in the field of photovoltaic. Its core business is the development, production and sale of mono- and polycrystalline, silicon-based solar cells. Its core business segment Solar Cell Production includes monocrystalline cells, comprising Q6M and Q6LM; and polycrystalline cells such as Q5, Q6, Q6LTT, Q6LTT3 and Q6LEP3, among others. The Company also offers a range of thin film modules and is engaged in Project Business.
Labels: Q-CELLS AG, QCE, solar analysis, Solar News, Solar Stocks, Solar Stocks Performance, solarstocks
Solar Stocks performance versus TAN
With the upgrades given today, some Solar Stocks started to move, while others remained in the red. The TAN Solar ETF is still neutral for today, but let's compare the two biggest performers for today with the Solar Stock ETF Benchmark:
Energy Conversion Devices, Inc. (NASDAQ:ENER) is still one of the worst performers counting from the bottom of the Bear Market since March, it's low PER and the fact that its Operating Income is positive for the 1st Quarter of 2009, means this could be one of the stocks to watch in the future. Just remember that it still is a laggard:
Very nice performance since the bottom, but still below the average when compared to TAN.
TAN is the ETF that represents the 'Stock Index' for the whole Solar Industry, and has already recovered all of the losses since December, but still has much to recover. This should be the perfect candidate if you want to diversify in the Solar Industry, but look to the long term!
Labels: ENER, Energy Conversion Devices Inc, ESLR, Evergreen Solar, solar analysis, solar ETF, Solar Stocks, TAN
Suntech Power Holdings Co., Ltd. (STP)
Suntech Power Holdings Co., Ltd. (STP) is the leading solar technology company in the world. It designs and manufactures photovoltaic (PV) cells and modules but the reduced demand and huge capacity build up over the last few years made solar product prices drop sharply.
Its products include monocrystalline and multicrystalline silicon PV cells.
The recent oil price recovery helped the whole solar industry, since higher Oil prices means solar energy is more cost competitive and becomes more attractive as an alternative source of energy.
Suntech Power is one of the few solar stocks that is profitable in the last years, and even with the current crisis, it will probably remain profitable during this fiscal year, even if affected by the lower demand and the lower oil prices.
Suntech Power's latest upgrades and backing from China's goverment can guarantee that the company will bode well in the next years.
In the short-term, the technical analysis points to a possible retraction for the next weeks, but the trend for the next months seems to be either sideways or bullish.
If the world markets keep the recent recovery trend up, STP will probably follow along.
Suntech Power Holdings is up around 30% since the start of 2009, and more than tripled since its March lows.
Labels: photovoltaic, solar analysis, Solar Stocks, solarstocks, STP, Suntech Power
