BofA Sees Many Polysilicon Module Manufacturers Exiting Market by 2013

October 7, 2011 1:59 PM EDT Send to a Friend
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An analyst at Bank of America (NYSE: BAC), Joe Osha, believes that solar module manufacturing capacity for 2012 will be roughly two times the firm's current demand forecast.

Mr. Osha notes that the outcome for solar companies and their shares will be "widely divergent" in 2012 as the average price per watt for crystalline silicon modules look to fall by 32 percent, trumping the 25 percent decrease in 2011. As a result of drastic decline in price per watt, the firm forecasts that many polysilicon module manufacturing companies will exit the industry.

Looking ahead, Mr. Osha is more positive on 2013 as he anticipates that volume demand will increase and that supplies will decrease.

The firm has recently reinstated coverage on shares of Yingli Green Energy (NYSE: YGE) and ReneSola Ltd. (NYSE: SOL) with Buy rating and price targets of $4 and $5 dollars. BAC also has a Buy rating on shares of First Solar (Nasdaq: FSLR) with a $85 price target.

Within the industry, Bank of America has an Underperform rating on shares of LDK Solar (NYSE: LDK) with a $1 price target, JA Solar Holdings (Nasdaq: JASO) with a $1 price target, SunPower Corp. (Nasdaq: SPWRA) with a $5 price target, Suntech Power Holdings (NYSE: STP) with a $1 price target, and Trina Solar Limited (NYSE: TSL) with a $1 price target.


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