With European markets plunging concerning solar demand, solar companies Canadian Solar (Nasdaq:CSIQ), Yingli Green Energy (NYSE:YGE), Solarfun (Nasdaq:SOLF), Ascent Solar (Nasdaq:ASTI) and SunPower (Nasdaq:SPWRA) probably won't be able to come close to their third-quarter results anytime soon.
Wedbush sees the North American solar market and china, which are slowly increasing in solar demand, not able to make up for Europe shortfalls.
All the companies listed above are rated as "Neutral" by Wedbush because of that, although each company has other factors in the rating decision.
Most of the solar companies have challenges because of the push to cut costs as government subsidies are lowered, which means they'll have to compete increasingly based on market conditions in the future.
Eliminating or lowering of government subsidies also means the threat of commoditization in the industry, which is why lowering costs is so important to them.
Solar companies could have a rough ride ahead, with some of it depending on how long the weak economic global conditions continue.
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