Wednesday, January 21, 2009

Not All Solar Stocks Are Created Equal (ESLR; FSLR; SPWRA; STP)

From Tech Trader Daily:

While solar stocks often trade in lock-step, the companies in the group have distinct differences. To get some sense of that, consider today’s analysis of the group by Merriman Curhan Ford analyst Craig Irwin, who launched coverage of the sector. Irwin launched coverage of First Solar (FSLR) with a Buy rating, Evergreen Solar (ESLR) and SunPower (SPWRA) with Neutral ratings and Suntech (STP) with a Sell rating.

  • First Solar: “The company’s unique position as the industry cost leader leaves room for management to remain opportunistic in a volatile solar demand environment,” he writes. Irwin says the stock should be a “core holding,” and contends the shares are worth $190-$210. He expects profits of $9.39 a share this year, and $10.48 next year. His ‘09 view is way above the Street consensus of $7.02. He contends the company “could shift its model to larger financed projects with lower selling prices, but lower frictional costs and lower working capital requirements.”>>>MORE