From Tech trader Daily:
One factor that has plagued the solar stocks this year is the strengthening of the U.S. dollar: with sales denominated largely in Euros given he huge portion of the end market represented by Spain and Germany, currency has been a major headwind to the sector. But if the dollar starts to sink, the headwind could become a major tailwind.
Barclays Capital solar analyst Vishal Shah notes that the drop in the exchange rate from $1.56 to the Euro to $1.31 prompted most solar sector companies to sharply reduce estimates. But he notes in a research report today that Barclays currency strategy David Woo sees the rate moving back up to $1.46 to the Euro by the end of 2009. If that happens, he says, there could be significant upside to solar sector earnings - as much as 50%-80% above current estimates....MORE