Evergreen Solar (ESLR) shares are down sharply this morning, pressured by downgrades from both Citigroup analyst Timothy Arcuri and Pacific Crest analyst Mark Bachman.
- Arcuri cut his rating to Sell from Hold, with a new target of $1, down from $3. “Customers like the product, but ESLR remains in a liquidity struggle that is forcing it toward what should have been done from the get-go, focusing on its competitive advantage, making wafers,” he writes. “Near-term, gross margins turns negative again” until it finishes transitioning manufacturing to China, he adds, while cash will stand at at just $50 million by the first half of 2010. Longer-term, he adds, the company’s module cost position won’t be any better than peers. And he says that it could take a few years for the company to make larger wafers that comply with current industry standards; for now, the company is the only taker for the wafers....MORE