In pre-market trading the stock is up 9.11% at $4.91.
From Notable Calls:
Morgan Stanley is out with a fairly major upgrade on Renesola (NYSE:SOL) upgrading the Chinese Solar name to Overweight from Equal-Weight raising their price target to $6.60 (prev. $2.30).
Analyst notes their upgrade reflects their view that ReneSola will target the profitable module business in FY10 with a low priced strategy to gain significant market share. Having cleared most of the high cost polysilicon inventory, the core wafer business will likely also become profitable. Although the negatives are fading away and the company is migrating into profitable new segments, the stock is still trading below its BVPS, which makes it compelling, in Morgan's view....MUCH MORE...Notablecalls: All systems 'GO' on Renesola (SOL) - this one is cleared for takeoff. Actionable Call Alert!
- I trust you have seen the action in some of the Chinese Solar names lately. They are flying.
- Renesola (SOL) has been a notable laggard in the space and with a blessing from a firm the size and reputation of Morgan Stanley it can't get much better.
- I'm sure many of you Solar watchers saw the positive comments on Ja Solar (JASO) from Morgan Stanley's Solar team on Monday. Look at what the stock did afterward. It went from ~4.50 to around 6.00 in two days. This was of course helped by the guidance raise on Monday evening but that was what Morgan Stanley was calling for. They now have a lot of credibility in the space.
Renesola (SOL) is among the smaller names in the space which should amplify the expected move in the name today and over the coming days. A forgotten name brought back to life. That's the way we like it.
This one will trade up 10-15% today putting $5.00-5.30 levels in play.