Following a press conference in Germany yesterday in which the solar industry and the Environment Minister outlined potential mid year feed-in-tariff cuts, Auriga posted its thoughts which I wanted to highlight for my readers. The bottom line is that despite Germany’s expected cuts, they remain bullish on the sector and haven’t made any changes to their ratings or estimates.
– Worst case tariff decline isn’t likely. Auriga sees German solar installations this year at … Read the rest
Auriga released its 2011 report on the solar industry last night and I wanted to summarize it a bit here for my readers. Auriga continues to remain generally bullish on the sector and doesn’t buy into the weakening demand + supply glut scenario that several other analysts are predicting for 2011/2012. They predict 23% growth for 2011 and highlight the elasticity of the solar market where as prices decrease demand picks up. They cite a … Read the rest
Auriga initiated coverage of Power One (PWER) after the bell yesterday with a Buy rating and $14 price target. The firm sees PWER as a the leader in the solar inverter market with solid management and strong cash flow. While they see near term volatility as the industry shifts from Europe to the US and China, they expect volatility to subside in the 2nd half of next year.
Auriga is out with some notes on First Solar (FSLR) following the company’s guidance last night. The firm notes that the company issued guidance that beat consensus estimates and the whisper numbers which should be viewed positively by the Street. Auriga continues to see FSLR as a long term investment rather than a trading vehicle and maintains its Buy rating. The price target however declines just a bit from $175 to $167 as industry … Read the rest
Auriga posted a few more solar calls recently. This morning they initiated coverage of ReneSola (SOL) with a Buy rating and a $20 price target which is more than double the current level ($8.40). The believe sentiment is overly negative on this China solar leader. The firm notes that SOL benefits whether poly prices stay high (by focusing on wafering operations) or if module prices move lower (by sourcing more modules with its low cost … Read the rest
Auriga is out today reiterating the Buy rating and $20 price target on Daqo New Energy (DQ). The firm believes the company is on schedule to produce 850MT of polysilicon in Q4 which is the top end of guidance and sees poly prices holding firm at $75/kg. They see little downside risk to the shares at the this level and believes the stock has been unjustly punished since reporting earnings. After a slow start today, … Read the rest
Auriga is out this morning maintaining its Buy rating and raising the price target to $38 on Trina Solar (TSL) ahead of its earnings report next Tuesday. They believe the company has been selling at higher prices and higher volumes than the Street predicts to finish out 2010 and that 2011 will be stronger than expected as well.
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The firm believes the company … Read the rest
Auriga is out with a research report on Sunpower (SPWRA) this morning following the recent analyst day and the firm is maintaining its Hold rating on the company, but lowering the price target a bit from $12 to $11. Here are the highlights..
– Operating cash flow expected to be much improved, but results have yet to be proven
– Lowering non GAAP EPS estimate due to lower margins from $1.28 to $1.25/share
– Sales … Read the rest
Auriga issued reports on both Solarfun (SOLF) and Yingli Green Energy (YGE) and remain bullish on both.
They are maintaining the Buy rating on Yingli Green Energy (YGE) but reducing the price target a bit from $15 to $13 because the firm believes margins may be peaking. However they believe the Fine Silicon depreciation and Panda expansion costs are overblown and believe the company will continue to gain market share. Shares of YGE traded down … Read the rest
After trading stocks for nearly 15 years and covering the markets religiously for nearly 10, there are certain nuances you pick up on. One is the fact that the blogosphere is riddled with misleading headlines and outright errors. Hey, I’m guilty too at times. It always pays to double check and also keep in mind that most sites don’t report the non GAAP number which is the number that analysts use. That’s why you’ll often … Read the rest