Piper Jaffray Defends Solar Stocks Amid Negative Barron's Article (FSLR, YGE, TSL, more)
Responding to a bearish Barron's article from this weekend, analysts at Piper Jaffray (led by Jesse Pichel) are out with a seemingly reassuring research note on the solar sector. The firm believes that the recent reductions in the German feed-in tariff should stimulate growth within the solar market. Piper Jaffray reiterates Overweight ratings on its top picks: Yingli (NYSE: YGE), Trina Solar (NYSE: TSL), Canadian Solar (Nasdaq: CSIQ), JA Solar (Nasdaq: JASO), ReneSola (NYSE: SOL) and First Solar (Nasdaq: FSLR).
Piper argues that this weekend's Barron's article "is another sign that the negative sentiments has been priced in solar stocks and the sector is poised to rebound with improved visibility into 2H10." The firm continues, "FIT cuts from Germany and other countries should reset IRR to a healthy and more sustainable level. Industry capacity is likely to consolidate to ~15 of the largest and most efficient manufacturers."
It seems that the Barron's article is outweighing the bullish analyst note today; most solar stocks are moving lower and the Claymore/MAC Global Solar Index (NYSE: TAN) is down 2.1%.
Elsewhere in the group:
- First Solar - down 0.1% to $115.40
- Yingli - down 1.8% to $12.15
- Trina Solar - down 3.6% to $23.61
- Canadian Solar - down 1.9% to $22.56
- JA Solar - down 2.8% to $4.83
- ReneSola - down 1.6% to $5.09
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