Canaccord Adams analyst Jonathan Dorsheimer this morning launched coverage of three solar stocks - Suntech (STP), SunPower (SPWRA) and Evergreen Solar (ESLR) - taking a cautious stance on each. Here’s a quick rundown on his calls:
Suntech: He starts with a Hold rating and $12 target price, below yesterday’s close at $13.95. “Suntech has among the industry’s largest capacity and production,” he writes. “However the company’s history was slightly marred as was forced into the pricey polysilicon spot market in 2008 and took on significant debt to fuel its growth.” Near-term, he sees risks of accounts receivable writedowns related to excess channel inventories. “Checks indicate that certain large customers throughout the industry have taken inventory and will pay current market prices, rather than the prices for which the panels were booked,” he writes....MORE
This seems a bit late to the party.
