A Mixed Bag Of Headlines Weighs On Solar Stocks (FSLR, STP, TSL, CSUN, JKS)
Shares of First Solar (FSLR), the largest U.S. solar company, are higher by 2% despite being among several solar companies to have their estimates cut by Cowen, which said it revised its model to account for solar industry price erosion. Cowen did say that First Solar should emerge as a long-term winner, noting the company’s low costs and strong margins and balance sheet.
The kind words on First Solar aren’t doing much to help the Solar Stocks Index, which is down 0.3%. Cowen also lowered its estimates on Suntech Power Holdings Co (STP) and Trina Solar (TSL), but noted Suntech is also well positioned due to brand recognition and product quality while Trina Solar will emerge as a winner due to its strong capital position and low cost structure. Cowen has “outperform” ratings on all three stocks.
Shares of China Sunergy (CSUN) are plunging 9% after the company lowered its second-quarter and full-year shipment and gross margin guidance. The company expects second-quarter shipments of 100-110 megawatts compared with an earlier estimate of 120-130 MW. For the full year, China Sunergy is now forecasting shipments of 580-600 MW, down from 670-690 MW. Second-quarter gross margins are expected to come in around 1% compared with a prior estimate of 7.5%-8.5%.
JinkoSolar Holding (JKS) is down 1% despite being added as a top pick at Collins Stewart, but the research firm lowered its price target on Jinko to $32.50 from $34.50. The firm reiterated a “buy” rating on the stock while noting the shares trade at a discount to peers. Jinko has used its low module processing costs to rapidly gain market share over the past year, which has been a tough environment for solar firms, Collins Stewart said.
Investors can track the Solar Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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Solar Soars Again: Is A Pull Back Looming? (The Market Financial, 5/13/13)
First Solar (NASDAQ: FSLR) Bets on Higher Demand (Energy and Capital, 5/8/13)
Every Solar thermal Plant in India is delayed, still the Government wants to award more (Green World Investor, 5/13/13)
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