Nomura Securities on Asia Solar Stocks: Waiting for Light at End of Tunnel - Strong Headwinds Amidst Bleak Macros
Tweet Send to a FriendGet Alerts CSIQ Hot Sheet
Price: $7.84 +10.73%
Rating Summary:
4 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade CSIQ Now!
Nomura Securities on Asia Solar Stocks: Waiting for the light at the end of the tunnel - Strong headwinds amidst bleak macros, high 2H11F inventories and weak 1H12F demand
Nomura analyst, Nitin Kumar, said, "Action: Wait for next phase of recovery in demand, likely in 2H12F The solar sector has de-rated sharply over the past two months. Valuations have unwound sharply as well, and we see strong investor interest in looking for a re-entry point. We have stress-tested our numbers, however, and do not see any respite. While valuations are near historical troughs, positive longer-term catalysts seem likely to take time and near-term catalysts are lacking so we are cautious on the sector outlook."
"Longer-term catalysts, for companies which can reposition themselves in for new realities, will come from: 1) Supply-side consolidation as higher cost producers are priced out of the market; and 2) demand elasticity given lower ASPs enabling stronger demand from new regions, especially US, China, Japan, and India; albeit needing improved financing availability."
Downgrades and price target/estimate changes include:
Canadian Solar (Nasdaq: CSIQ): maintains Neutral, slashes PT from $9.60 to $3.40. 2011E EPS from $1.89 to (52.33c), 2012E from $1.64 to (71.99c).
JA Solar (Nasdaq: JASO): maintains Neutral, slashes PT from $5 to $2. 2011E EPS from $1.00 to 19.26c, 2012E from 92.65c to (17.72c).
LDK Solar (NYSE: LDK): downgraded from Neutral to Reduce, slashes PT from $7 to $2.60. 2011E EPS from $1.74 to (6.79c), 2012E from $1.25 to (77.91c).
Suntech Power (NYSE: STP): downgraded from Buy to Neutral, slashes PT from $10 to $2.20. 2011E EPS from $1.05 to (78.17c), 2012E from $1.17 to ($1.03)
Trina Solar (NYSE: TSL): downgraded from Buy to Neutral, slashes PT from $25 to $7. 2011E EPS from $3.04 to $1.37, 2012E from $3.37 to (54.18c)
Yingli Green Energy (NYSE: YGE): downgraded from Buy to Neutral, slashes PT from $9 to $3.40. 2011E from $7.98 to $3.45, 2012E from $6.21 to ($5.61).
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Nomura analyst, Nitin Kumar, said, "Action: Wait for next phase of recovery in demand, likely in 2H12F The solar sector has de-rated sharply over the past two months. Valuations have unwound sharply as well, and we see strong investor interest in looking for a re-entry point. We have stress-tested our numbers, however, and do not see any respite. While valuations are near historical troughs, positive longer-term catalysts seem likely to take time and near-term catalysts are lacking so we are cautious on the sector outlook."
"Longer-term catalysts, for companies which can reposition themselves in for new realities, will come from: 1) Supply-side consolidation as higher cost producers are priced out of the market; and 2) demand elasticity given lower ASPs enabling stronger demand from new regions, especially US, China, Japan, and India; albeit needing improved financing availability."
Downgrades and price target/estimate changes include:
Canadian Solar (Nasdaq: CSIQ): maintains Neutral, slashes PT from $9.60 to $3.40. 2011E EPS from $1.89 to (52.33c), 2012E from $1.64 to (71.99c).
JA Solar (Nasdaq: JASO): maintains Neutral, slashes PT from $5 to $2. 2011E EPS from $1.00 to 19.26c, 2012E from 92.65c to (17.72c).
LDK Solar (NYSE: LDK): downgraded from Neutral to Reduce, slashes PT from $7 to $2.60. 2011E EPS from $1.74 to (6.79c), 2012E from $1.25 to (77.91c).
Suntech Power (NYSE: STP): downgraded from Buy to Neutral, slashes PT from $10 to $2.20. 2011E EPS from $1.05 to (78.17c), 2012E from $1.17 to ($1.03)
Trina Solar (NYSE: TSL): downgraded from Buy to Neutral, slashes PT from $25 to $7. 2011E EPS from $3.04 to $1.37, 2012E from $3.37 to (54.18c)
Yingli Green Energy (NYSE: YGE): downgraded from Buy to Neutral, slashes PT from $9 to $3.40. 2011E from $7.98 to $3.45, 2012E from $6.21 to ($5.61).
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- Wells Fargo Upgrades Rosetta Resources (ROSE) to Outperform, Shares Attractive
- Needham & Company Remains on Sidelines wth Applied Materials (AMAT) Post Q2
Create E-mail Alert Related Categories
Analyst Comments, DowngradesRelated Entities
NomuraComments
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
solar picks
Total Solar Energy on Dec 17, 2011 06:34 AMMark as Spam | Reply to this comment
I conducted an interview with Jeff Siegel about Solar Stocks and he said "Some of the pure plays I like include: Trina Solar (NYSE:TSL), Suntech Power (NYSE:STP), Western Wind Energy Corporation (TSX-V:WND), U.S. Geothermal (AMEX:HTM), ECOtality (NASDAQ:ECTY) and Maxwell Technologies (NASDAQ:MXWL). If you're looking for more safety in renewable energy, and don't mind playing a stock that's not a pure play, I'm definitely a fan of ABB (NYSE:ABB). I think ABB is going to be the main facilitator of renewable energy transmission. Particularly when it comes to offshore wind. I also like Siemens (NYSE:SI) as a non-pure play on renewable energy."
http://www.totalsolarenergy.co.uk/solar-energy-jeff-siegel.html