Friday, September 24, 2010

Dissecting Piper Jaffray’s Solar Initiations (FSLR; SOL; SPWRA; TSL YGE)

Piper Jaffray initiated coverage on ten solar stocks with “Overweight” ratings on Friday, and while it would appear that the analyst is bullish on the sector, a look at the respective price targets shows a wide range of upside expectations. While the firm’s $9 Suntech Power Holdings Co (STP) price target actually represents a -4% discount to Thursday’s closing value, Piper sees ReneSola (SOL) surging by more than 80% to $20 per share.

Over the last month, ReneSola is leading the Solar Stocks Index with a 45% rally. Meanwhile, JA Solar Holdings (JASO) and domestic player SunPower (SPWRA) have added more than 35% for the period, and Piper sees the stocks gaining another 53% and 46% respectively based on price targets of $12 and $20 per share.

Domestic solar giant First Solar (FSLR) got a $200 price target from the analyst, representing a 40% premium to Thursday’s closing value. The stock has gained 14% over the last month, but is among solar laggards over the past five sessions. Merrimack, New Hampshire-based GT Solar International (SOLR) got started with a $10 price target, representing a 30% premium to Thursday’s closing value....MORE
Piper was part of the FSLR selling group for the 11/06 IPO and the 8/07 follow-on offering.
Same for ReneSola's IPO and a follow-on in June '08.
They were below the bulge again for GT Solar's IPO.
They did part of JASO's 5/08 convert and the 10/07 follow-on, CSIQ's follow-on.

No coverage on the disaster that is Evergreen Solar, for whom Piper participated in three separate offerings.