Monday, April 7, 2008

Applied Materials Dips After Analyst Downgrades on Solar Panel Costs and Manufacturing Issues

The Stock is down 2%. The analyst raises a good point but only went to neutral?
From the AP via Yahoo:

Shares of Applied Materials have declined in premarket trading after a Credit Suisse analyst downgraded the stock, pointing to problems with the computer chip equipment maker's solar energy business.

Satya Kumar lowered his rating to "Neutral" from "Outperform." He said the company is having difficulty manufacturing its large solar panels, and noted that the panels are expensive because of their size.

Kumar added that the company's efficiency goals are too low. By 2010, Applied Materials Inc. plans to make solar panels that cost $1 per watt of power generated, he said. But more efficient panels are already on the market.
The Santa Clara, Calif., company's stock declined 24 cents to $20.65 in the premarket session. Shares closed at $20.89 Friday.

Here's Yahoo's upgrade/downgrade list, Cowen hasn't done anything since downgrading to neutral in May of last year.