Deutche Bank Bullish on China Solar - Suntech, RenaSola, Trina, Yingli

Deutsche Bank Remains Bullish on China Solar Energy Sector: Upgrades Suntech Power (STP) to Buy

9:41 am ET 10/19/2010 - StreetInsider

Deutsche Bank upgrades Suntech Power (NYSE: STP) from Hold to Buy. Deutsche analyst says, "We expect the leading China solar PV manufacturers to report strong sets of results in 3Q10E and 4Q10E, and believe this momentum should be further extended beyond 2010 due to a more stable module ASP outlook in 1Q11 qoq. Module ASP may start to drop in 2Q11E but we think this risk is likely to be overcome by the ongoing effort to reduce manufacturing costs. The sector trades at an inexpensive valuation of 5-7x 2011E P/E; we reiterate Buy on ReneSola (NYSE: SOL), Trina (NYSE: TSL) and Yingli (NYSE: YGE), and upgrade Suntech to Buy." "We remain bullish on ReneSola despite the 66% increase in share price in the past three months. We reiterate Buy on Trina mainly on its manufacturing cost leadership. We also like Yingli but see possible near-term pressure on 3Q10E gross margins due to the additional ramp-up cost from its polysilicon facility and new production lines. We upgrade Suntech as we believe the stock now offers an attractive risk-adjusted reward return after a year of share underperformance and expect the company to secure new wafer capacity in the near term." To see all the upgrades/downgrades on shares of STP, visit our Analyst Ratings page.Shares are trading at $9.27, down $0.27 (-2.86%) this morning.

The Solar Module Market: Concerns Ahead « TechPulse 360

The Solar Module Market: Concerns Ahead « TechPulse 360

Sales in other European countries, Italy, Spain and the Czech Republic, are moving ahead in advance of tariff cuts of their own. This is leading prices to be stable and wafer prices to even climb a bit. According to Y. Edwin Mok, an analyst at Needham & Co., crystalline cell pricing has risen to $1.35 a watt, compared with $1.25 a watt or so in the first quarter.
This could help vendors such as SunPower, JA Solar and Suntech Power Holdings.
The danger is that this year’s strength will turn into next year’s softness. The fear is especially high in Italy and Spain, which are facing large tariff cuts, says Mok. German installations could decline as well, he adds.
Mok is not alone in his assessment. John Hardy at Gleacher & Company said he expects the world’s largest module maker, First Solar, to post better-than-expected second-quarter sales later this month and speak favorably about the rest of the year.
“The big industry test is coming” in the first quarter of 2011, he says. That’s when sales could slump and another rapid decline in prices could spark worries of another 2009.

Suntech Boasts It Is The Largest Solar Company, Warns Of Higher Wafer Costs « TechPulse 360

Suntech Boasts It Is The Largest Solar Company, Warns Of Higher Wafer Costs « TechPulse 360