Is the worst for solar stocks over? It’s still too early to make a definitive statement but when you see stocks rising in the face of bad news then you know traders are looking for excuses to buy rather than sell. That’s one indication a bottom is near. Perhaps that’s the case for shares of ReneSola (SOL) which reported Q2 results this morning.
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While the company beat … Read the rest
Solar stocks were under some pressure today after Evergreen Solar (ESLR) and Renesola (SOL) sounded the caution alarm as average selling prices and demand falls on inventory increases and subsidy uncertainties. Renesola reported earnings that missed on the EPS side, but beat on the revenue side. The stock was down nearly 10% at one point and tested some key support around the $8 level earlier this morning.
===> Click Here For Your FREE Renesola Analysis… Read the rest
Usually, I just posts highlights of the reports from Mark Bachman from Auriga, but this morning decided to just publish in full. Thoughts?
As the second act of the Italian solar drama begins, we look at the bear argument of "too much 2012 capacity leading to uncontrollable price and margin declines." At the risk of starting a larger food fight, we provide our view on how industry capacity develops and show that actual shipments end … Read the rest
Shares of ReneSola (SOL) were hammered today, down nearly 17%, after the company reported strong earnings results, but weaker guidance than what the Street was expecting. The company reported another quarter of big quarter over quarter growth with an EPS of .69 on revenues of $386 million. That matched analyst estimates on the EPS side and beat estimates on the revenue side (analysts expected $366 million). However, traders sold the stock due to weak … Read the rest
Auriga sent over a research report to us this morning, reiterating their cautiously bullish stance on China solar stocks following a 7 day trip throughout China. The firm visited both public and private companies and while positive in the near term for both shipments and pricing, there is some trepidation due to rising costs.
Commenting on earnings season, they feel that while most companies will post beat and raise quarters, some may reveal some margin … Read the rest
Yesterday, Auriga reiterated their Buy rating and $27 price target on ReneSola (SOL) which represents about 150% upside to current levels. They highlight the fact that SOL is a customer of WFR which posted strong earnings results and signaled out a Chinese company with “very nice costs” which they believe to be ReneSola. They continue to believe SOL is their top play in their solar coverage space. The bottom line is that they view SOL … Read the rest
Earlier today I posted a summary of Auriga’s bullish outlook on solar stocks for 2011. According to Barrons, Credit Suisse has also posted their outlook for solar stocks this year, but is less bullish. They have a cautious view in the near term and a Market Weight rating on the sector.
Auriga commented on the elasticity of the solar market where demand picks up as prices fall. Credit Suisse notes that this has traditionally … 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
Two two green stocks are moving this morning on notable analyst calls.
Goldman Sachs initiated coverage on ReneSola (SOL) with a Buy and $11 price target which is about 30% higher from current levels. The firm likes the solid balance sheet and the valuation after a big correction. I’ve said that SOL and JASO have offered compelling entry points off their 200 day moving averages and still feel that way. Shares of SOL are up … Read the rest
Jefferies has a Buy rating and a $41 price target on American Superconductor (AMSC) and believes it’s the best wind play in China since its largest customer is Sinovel which is the #1 wind energy company in China.
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Wells Fargo is out this morning with several solar calls and is mostly bearish. They upgraded Yingli Green Energy (YGE) from Market Perform to Outperform citing low production … Read the rest