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.
Showing posts with label Solarfun Power Holdings. Show all posts
Showing posts with label Solarfun Power Holdings. Show all posts
Thursday, October 28, 2010
Monday, October 11, 2010
Solarfun Power's (Nasdaq:SOLF) Higher Inputs will Pressure Margins Says Auriga
Solarfun Power (Nasdaq:SOLF) was downgraded from "Buy" to "Hold" by Auriga, citing higher cost of inputs (glass, back sheet, poly, wafer, cell), which could lead to challenging margins and lower earnings for the company.
"Specifically, our model calls for - 19% gross margins in both Q3 and Q4, while the consensus estimates incorporate gross margins of 22% over the same timeframe - a 300 basis point discrepancy. While we expect positive comments with regard to both shipments and pricing, we believe the SOLF may be susceptible to higher input prices, thus affecting COGS, and ultimately EPS. We have tweaked our model slightly higher in the near term, but have kept our 2011 assumptions unchanged. Further clarity on ramping additional capacity next year could help raise our 2011 estimates and would allow us to be more constructive on the stock in the future. But in the short term, we find it prudent to step aside until the consensus expectations are re-evaluated," said Auriga analyst Mark Bachman.
Solarfun closed down Friday at $11.63, losing $0.79, or 6.36 percent. Auriga has a $13 price target on the company.
"Specifically, our model calls for - 19% gross margins in both Q3 and Q4, while the consensus estimates incorporate gross margins of 22% over the same timeframe - a 300 basis point discrepancy. While we expect positive comments with regard to both shipments and pricing, we believe the SOLF may be susceptible to higher input prices, thus affecting COGS, and ultimately EPS. We have tweaked our model slightly higher in the near term, but have kept our 2011 assumptions unchanged. Further clarity on ramping additional capacity next year could help raise our 2011 estimates and would allow us to be more constructive on the stock in the future. But in the short term, we find it prudent to step aside until the consensus expectations are re-evaluated," said Auriga analyst Mark Bachman.
Solarfun closed down Friday at $11.63, losing $0.79, or 6.36 percent. Auriga has a $13 price target on the company.
Tuesday, October 5, 2010
JA Solar (Nasdaq:JASO) Upgraded by Canaccord Genuity, Sunpower (Nasdaq:SPWRA) and Suntech (NYSE:STP) Downgraded
The solar industry has been all over the place recently, and solar companies like JA Solar (Nasdaq:JASO), which was upgraded by Canaccord Genuity, and Sunpower (Nasdaq:SPWRA) and Suntech Power (NYSE:STP), which were downgraded, and been all over the place as well.
It'll be surprising if the unpredictable solar energy stocks keep the upward momentum, as there isn't a lot of reasons for them to do so, as while there is some increasing demand in some countries, the margins remain under pressure.
Here's what Canaccord said about select solar stocks:
"Specifically, we are upgrading JA Solar to a BUY rating from Hold, recommending that investors overweight this name relative to other solar stocks."
"Concurrently, we are downgrading both Suntech to a SELL rating from Hold and SunPower to a SELL rating from a Hold, recommending that investors underweight these names as we believe these companies will underperform the general solar universe."
"We maintain our Buy ratings on Canadian Solar (NASDAQ:CSIQ) Solarfun (NASDAQ:SOLF) and Hold rating on First Solar (NASDAQ:FSLR)."
The price target on JA Solar was raised from $7 to $11, on Sunpower it was slashed from $30 to $11, and on STP from $9 to $7.
It'll be surprising if the unpredictable solar energy stocks keep the upward momentum, as there isn't a lot of reasons for them to do so, as while there is some increasing demand in some countries, the margins remain under pressure.
Here's what Canaccord said about select solar stocks:
"Specifically, we are upgrading JA Solar to a BUY rating from Hold, recommending that investors overweight this name relative to other solar stocks."
"Concurrently, we are downgrading both Suntech to a SELL rating from Hold and SunPower to a SELL rating from a Hold, recommending that investors underweight these names as we believe these companies will underperform the general solar universe."
"We maintain our Buy ratings on Canadian Solar (NASDAQ:CSIQ) Solarfun (NASDAQ:SOLF) and Hold rating on First Solar (NASDAQ:FSLR)."
The price target on JA Solar was raised from $7 to $11, on Sunpower it was slashed from $30 to $11, and on STP from $9 to $7.
Friday, October 1, 2010
First Solar (Nasdaq:FSLR), Trina Solar (NYSE:TSL), Suntech (NYSE:STP),
Jefferies has given the solar industry a lot of love, raising the price
targets on First Solar (Nasdaq:FSLR), Trina Solar (NYSE:TSL), Suntech (NYSE:STP), JA Solar (Nasdaq:JASO), Yingli Green Energy (NYSE:YGE), Solarfun Power Holdings (Nasdaq:SOLF) and SunPower Corporation(Nasdaq:SPWRA).
The bump up in price targets for all the companies came from a trip the recently took in Asia and Europe, where they based the upwardly revised share prices on higher ASPs for every company.
First Solar's price target was raised from $142 to $160; JA Solar from $10 to $14, a 40 percent increase; Solarfun from $14 to $17, with a "Buy" maintained; SunPower from $13 to $15, reiterating a "Hold" on them; Suntech was raised from $10 to $11, maintaining a "Hold" on the company; Trina Solar was upped from $38 to $42, retaining a "Buy" rating; and Yingli Green Energy was increased from $17 to $20, also having a "Buy" maintained on the company.
Some analysts have questioned some companies in the sector, based on valuations and the sustainability of growth in some regions of the world; one of them being Germany.
targets on First Solar (Nasdaq:FSLR), Trina Solar (NYSE:TSL), Suntech (NYSE:STP), JA Solar (Nasdaq:JASO), Yingli Green Energy (NYSE:YGE), Solarfun Power Holdings (Nasdaq:SOLF) and SunPower Corporation(Nasdaq:SPWRA).
The bump up in price targets for all the companies came from a trip the recently took in Asia and Europe, where they based the upwardly revised share prices on higher ASPs for every company.
First Solar's price target was raised from $142 to $160; JA Solar from $10 to $14, a 40 percent increase; Solarfun from $14 to $17, with a "Buy" maintained; SunPower from $13 to $15, reiterating a "Hold" on them; Suntech was raised from $10 to $11, maintaining a "Hold" on the company; Trina Solar was upped from $38 to $42, retaining a "Buy" rating; and Yingli Green Energy was increased from $17 to $20, also having a "Buy" maintained on the company.
Some analysts have questioned some companies in the sector, based on valuations and the sustainability of growth in some regions of the world; one of them being Germany.
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