Credit Suisse Has Solar Supply Concerns, Downgrades SOLR, TSL, SOL, FSLR, JASO, STP

According to Barron’s, Credit Suisse is out this morning downgrading several solar stocks due to concerns about oversupply and softening demand next year.  Analyst Satya Kumar sees new capacity of 2GW/month this quarter with an overall increase of 50% next year while demand remains flat.  As a result, pricing could decline quicker than expected.

He’s downgrading six solar stocks, all of which are under pressure today.

Outperform ==> Neutral: First Solar (FSLR), Trina Solar (TSL), ReneSola (SOL), GT Solar (SOLR)
Neutral ==> Underperform: JA Solar (JASO), Suntech Power (STP)

Kumar states he’s still bullish on solar longer term and just sees a rough patch next year.  Falling prices would help drive adoption and may provide better entry points on leading solar names.  His only remaining Outperform rating is MEMC Electronics (WFR) which is also under pressure today.

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