Despite Major Run, These Solar Names Could Rise Up to 80% - Nomura (CSIQ) (TSL) (JASO)

Asian solar stocks are sharply higher Thursday after analystS at Nomura Securities turned bullish on a host of names, saying the latest subsidy announcements from China enable a better demand environment, finally providing solar with a firm ground to stand on.

The firm said despite an across the board rally in the group they see further 40-80% upside potential in quality names with: 1) industry leading cost structure; 2) relatively lower gearing; and 3) stock-specific positives.

Among U.S.-traded names, analyst Nitin Kumar upgraded Canadian Solar (NASDAQ: CSIQ), Trina Solar Limited (NYSE: TSL) and JA Solar Holdings Co., Ltd. (NASDAQ: JASO) from Neutral to Buy, with price targets of $6.90, $9.60 and $8, respectively.

Jusung, a likely beneficiary of capex for cell efficiency enhancements, also goes to Buy.

The firm has a positive evaluation of management and cost structure advantages for GCL (Neutral), OCI (Neutral), Motech (Reduce) and YGE (NYSE: YGE) (Reduce), but think valuations have run ahead.

The firm bearish on Suntech Power Holdings Co. Ltd. (NYSE: STP) and LDK Solar Co., Ltd. (NYSE: LDK) given going concerns.

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