North Coast Solar Stocks

July 31, 2009

Shares of Evergreen Solar decline on dismal 2nd-qtr results, fears of continued price erosion

Filed under: ESLR — Tags: , , , , — Jason @ 11:47 am

Friday July 31, 2009, 11:47 am EDT

NEW YORK (AP) — Evergreen Solar Inc. (ESLR) shares tumbled on Friday, a day after it reported a wider second-quarter loss, driven by falling selling prices for silicon wafers used in solar panels.

In midday trading on Friday, shares of the company fell 31 cents, or 13 percent, to $2.07.

The Marlboro, Mass.-based company said its loss more than doubled and was worse than Wall Street expectations. Evergreen cited lower selling prices and lower fees from its Sovello joint venture. It also cited higher costs related to greater production at its Devens facility.

Caris & Co. analyst Ben Pang said Evergreen’s margins are at risk as pricing erosion cuts away at profitability and demand has struggled due to a lack of product differentiation.

“Although there are signs of industry stabilization, we do not think margins can recover in the near term and losses are likely to drag on longer than expected,” Pang said.

He downgraded the stock to “Average” from “Above Average” and lowered his price target for the stock to $2, from an earlier target of $2.50.

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