Q-Cells AG, Renewable Energy Corp. and First Solar Inc. dropped in European trading as investors sought stocks with lower valuations and risk.
Q-Cells fell 10.95 euros, or 16 percent, to close at 55.49 euros in Frankfurt trading, the lowest since May 21. REC dropped 34 kroner, or 21 percent, to 125 kroner in Oslo. First Solar's shares traded in Germany sank 13 percent.
Renewable-power stocks surged last year as oil prices rose to records and demand for alternatives increased. Some of the best performers in 2007 are now falling as anxiety over slowing economic growth stokes concern that the rush to alternative energy will cool.
``The risk appetite is currently very low and all of these renewable-energy stocks are high-price/earnings, high-growth stocks,'' said Patrick Hummel, a Frankfurt-based UBS AG analyst who recommends buying REC shares. ``We don't have fundamental concerns about the growth story.''
Hummel today lowered his target for REC shares to 280 kroner from 320 kroner on concern investment costs may rise....MORE
QCEG's chart looks a bit alpine.
