North Coast Solar Stocks

November 19, 2009

Oppenheimer raises Solarfun to outperform

Filed under: SOLF — Tags: , , , , — Jason @ 11:11 am

Thu Nov 19, 2009 11:11am EST

Nov 19 (Reuters) – Oppenheimer & Co raised Solarfun Power Holdings Co Ltd (SOLF) to “outperform” from “perform,” a day after the Chinese photovoltaic cell maker posted a strong third-quarter profit, saying the stock offered more favorable risk/reward than its peers. While solar companies have indicated a rise in shipments for photovoltaic solar modules, that turn sunlight into electricity, they are now worried about the extent to which the German government might cut its aid to the domestic solar industry, the world’s top market for solar products.

Analysts Sam Dubinsky and Adam Baumgarten, who have a price target of $10 on shares of the company, said Solarfun has adequate earnings power to keep its stock at about $6 if macro conditions worsen.

“We believe a revamped/improving cost structure will lead to attractive gross margins and share gain opportunities in 2010,” the analysts wrote in a note to clients.

Jefferies & Co raised its price target on the stock to $5.75 from $4.50 and re-iterated its “underperform” rating on the stock, saying the company’s outlook for 2010 lacked clear visibility in the face of the challenges in the German market.

Shares of the Shanghai-based company were trading up 7 percent at $6.91 late morning Thursday on Nasdaq.

(Reporting by Antonita Madonna Devotta in Bangalore; Editing by Jarshad Kakkrakandy)

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