I mentioned the upgrades in the post before. Now for the downgrades. Jefferies is out this morning cutting the entire sector and downgrading several solar companies due to the same concerns we’ve heard for many months… oversupply and lack of demand.
First Solar (FSLR) cut to Hold from Buy
SunPower (SPWRA) cut to Hold from Buy
Suntech Power (STP) cut to Underperform from Hold
Ascent Solar (ASTI) cut to Underperform from Hold
China Sunergy (CSUN) … Read the rest
Energy Conversion Devices now has a a multi-year direct supply agreement with Mercury Solar Systems. Under the agreement, Energy Conversion Devices will sell its UNI-SOLAR PV laminates to Mercury, and provide them with technical support for future PV installations. Mercury believes it will purchase 15 MW of the laminates from Energy Conversion Devices.
In a press release, executives from both companies commented on the deal:
Mark Morelli, ECD’s President and CEO, said, “This agreement expands … Read the rest
Not all is rosy in solar land this morning. Piper Jaffray is downgrading Energy Conversion Devices (ENER) from Neutral to Underweight and is slashing the price target from $21 to $9.
Hat tip to StreetInsider.com for the following analyst comment:
“ENER’s end market is ~100% commercial, which by and large remains the weakest segment of the solar market and has not experienced the pronounced seasonality being witnessed in residential and to a lesser extent utility … Read the rest
Energy Conversion Devices just announced the purchase of Solar Integrated Technologies. Energy Conversion Devices paid $16.3 million to buy the PV roofing system manufacturer and installer and assume the company’s debt. They will pay about .11 per Solar Integrated Technology share. Energy Conversion Devices plans to fund the purchase using existing corporate funds.
In a press release, executives from both companies commented on the deal:
Mark Morelli, ECD’s president and chief executive officer said, “The … Read the rest
Energy Conversion Devices, Inc just announced that its subsidiary, Ovonic Battery Company, Inc, has sold its interests in Cobasys to SB LiMotive. Chevron Technology Ventures LLC, which also had an interest in Cobasys, has sold its interests as well. Cobasys is now owned by SB LiMotive, a joint venture between Samsung SDI Co., Ltd. and Robert Bosch GmbH.
Both Ovonic Battery Company, Inc. and Chevron Technology Ventures will continue to receive royalties paid to … Read the rest
Solar stocks were slammed today as oil prices continued to retreat and the cautious comments out of Barclays didn’t help either. Barrons reported this morning that analyst Vishal Shah is cautious on solar heading into Q2 earnings because of the magnitude of the recent rally and the unlikelihood of US & China demand picking up the Germany slack.
He made price cuts as well:
– ENER from $13 to $17 on customer financing
– FSLR … Read the rest
According to 24/7 Wall St, JP Morgan (JPM) is out with several solar ratings changes this morning, most notably an upgrade of Evergreen Solar (ESLR) two notches to Overweight with a doubling of the price target to $5/share. Shares are trading up about 6% in premarket trading. First Solar (FSLR) continues to get hit with cautious analyst comments and downgrades with JP downgrading it this morning from Overweight to Neutral due to a fear … Read the rest
Energy Conversion Devices (ENER) reported earnings results this morning that were a bit better than expected on the EPS side at .03 share but light on the revenue side, reporting $66 million (vs estimates of $69 million). Revenues were a bit off from the year ago quarter but the EPS took a significant hit which is not uncommon across the solar sector (unless you’re First Solar). It was just a few days ago that the … Read the rest
Energy Conversion Devices (ENER) is down more than 15% this morning on news that its Uni-Solar subsidiary has been forced to temporarily shutdown its operations in Auburn Hills and Greenville in addition to delaying the planned ramp at its second facility in Greenville. The company cited economic conditions and weak demand for the shut downs which are expected to last a month. Where’s that stimulus money? The auto makers and banks don’t seem to have … Read the rest
In an article released this morning entitled "Nightfall Comes To Solar Land," Bill Alpert of Barron’s predicts that the massive drop in silicon prices over the past year, combined with cooling demand for solar energy, will have a negative impact on the solar industry in general, particularly thin-film manufacturers like First Solar (FSLR) and Energy Conversion Devices (ENER). These two companies based their business models on a market in which there was not enough … Read the rest