Axiom Downgraded Several Solar Stocks to 'Sell' on Subsidy Cuts in Germany
FSLR Hot Sheet
Rating Summary:7 Buy, 21 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
This morning, Axiom downgraded several solar stocks from Neutral to Sell, including: First Solar (Nasdaq: FSLR), Yingli (NYSE: YGE), Suntech Power (NYSE: STP), and Power-One (Nasdaq: PWER).
Solar stocks fell yesterday and most are weaker today after Germany announced it would be making monthly subsidy cuts to slow the demand for panels in its country.
Axiom analyst, Gordon Johnson, now sees a serious cut in global demand and thinks it's close. Johnson sees at least 20% downside in solar stocks to reflect the news out of Germany.
Separately, in a Canaccord Genuity Morning Coffee article on STP, FSLR and TSL this morning: ...Barron's reported that a renewable energy analyst at Jefferies & Co. noted that a recent bout of short covering that has lifted shares of solar energy technology companies is destined to come to an end. The analyst referred to it as the “solar junk rally”, which he said is failing to price in some looming risks, such as the risk that companies may start to assemble solar modules outside of China to avoid import duties, which could raise prices for U.S. solar finished goods. The analyst also believes that Germany's decisions regarding fee-in-tarriffs will continue to negatively affect the solar sector.
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Solar stocks fell yesterday and most are weaker today after Germany announced it would be making monthly subsidy cuts to slow the demand for panels in its country.
Axiom analyst, Gordon Johnson, now sees a serious cut in global demand and thinks it's close. Johnson sees at least 20% downside in solar stocks to reflect the news out of Germany.
Separately, in a Canaccord Genuity Morning Coffee article on STP, FSLR and TSL this morning: ...Barron's reported that a renewable energy analyst at Jefferies & Co. noted that a recent bout of short covering that has lifted shares of solar energy technology companies is destined to come to an end. The analyst referred to it as the “solar junk rally”, which he said is failing to price in some looming risks, such as the risk that companies may start to assemble solar modules outside of China to avoid import duties, which could raise prices for U.S. solar finished goods. The analyst also believes that Germany's decisions regarding fee-in-tarriffs will continue to negatively affect the solar sector.
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