North Coast Solar Stocks

October 6, 2009

Solar shares rise with broader market strength

Filed under: FSLR, SPWR, TSL, YGE — Tags: , , , , , — Jason @ 3:37 pm

Shares of solar companies climbed across the board on broader market strength

3:37 pm EDT, Tuesday October 6, 2009

NEW YORK (AP) — Shares of solar stocks rose across the board on Tuesday along with the broader market, which strengthened on rising expectations for a global economic recovery.

FBR Capital Markets analyst Mehdi Hosseini said First Solar Inc. (FSLR), the nation’s largest solar panel maker, is poised to “benefit handsomely” from the weakened dollar, as the company still recognizes a majority of sales in euros, while its cost of goods sold are recognized in dollars.

Hosseini said that the company’s power purchase agreement to Enbridge Inc. (ENB), Canada’s largest pipeline operator, is encouraging, but warned that First Solar’s income statement is in a “transitional” period, leading him to believe there is still “significant downside risk” to the 2010 consensus earnings estimate of $7.27 per share. Hosseini expects a profit of only $5 per share. He rates the company “Underperform,” with a price target of $110.

Shares of First Solar rose $2.23 to $150.81.

Looking to solar-electric systems maker SunPower Corp. (SPWRA, SPWRB), Hosseini raised his third-quarter shipment estimate to 90 megawatts, up from 85 megawatts, as the solar photovoltaic market is strengthened by the rooftop segment. For the same period, Hosseini expects the company to install more than 40 megawatts worldwide, compared with a previous expectations of less than 40 MW of system installations.

Hosseini rates the company “Outperform” with a price target of $40.

Shares of SunPower rose 83 cents, or 3 percent, to $28.80 in afternoon trading.

Elsewhere in the sector, Yingli Green Energy Holdings Co. (YGE) shares rose 60 cents, or 5 percent, to $12.58. Shares of Trina Solar Ltd. (TSL) rose $2.26, or 7.4 percent, to $32.52.


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