Solar Rally Based on 'Recycled News' Says BofA ML; First Solar (FSLR) Ticks Lower

Solar stocks popped yesterday on news the MLP Parity Act was being re-introduced. This sent shares of First Solar (Nasdaq: FLSR), JinkoSolar Holding (NYSE: JKS), SunPower Corporation (Nasdaq: SPWR) and a number of other solar stocks higher.

In the view of Bank of America analyst Joe Osha, the market is trading on "recycled" news and "misinterpreted" hopes about demand from Europe. With this in mind, the rally is unlikely to continue, as re-introduction of the MLP Parity Act is "hardly a surprise," said Osha.

Of note, this morning Raymond James downgraded First Solar to Underperform and said the market was acting "oblivious" to risks. Shares of First Solar are trading slightly lower pre-market on Thursday.

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