Everybody wants to get in their predictions for the year and Barclays Capital is providing its thoughts on the solar industry as well according to Barrons. Analyst Vishal Shah notes that the fundamentals were much better than expected last year, but could come under pressure particularly in the second half of the year. He mentions that in order for the solar market to thrive again, US and China demand will need to pick up the slack of softening European demand as subsidy cuts take hold.
He recommends being selective and highlights Trina Solar (TSL), MEMC Electronic Materials (WFR), Sunpower (SPWRA) and Suntech Power (STP) as his top picks. Suntech was actually upgraded today from Equal Weight to Overweight with the price target jumping from $9 to $12. He cites vertical integration and N. American exposure as bullish catalysts. Shares of STP were up about 3% today and much improved technically from a few weeks ago. It appears STP may have hit a long term bottom around the $7 level and may provide compelling long term entry points on pull backs.