Marketwatch Thinks It’s “Solar’s” Time!

    One of Marketwatch’s authors, Sara Sjolin, published a ‘solar’ article early this morning:

Here comes the sun: 7 solar stocks set to shine

The future looks sunnier for solar power firms. That’s the  bright and shiny message from Citigroup, anyway. This week, the brokerage firm  started coverage of seven U.S. solar companies, four of them at a “buy.”

The solar sector has seen an impressive expansion in recent years, with a  compounded annual growth rate in installations of 59% from 2007 to 2012. As oil  and gas prices rise alongside political calls for clean energy, analysts at  Citigroup predict sun-generated energy will be in high demand. [….]

(Page 2:)  First Solar, Inc. [Ticker: FSLR]

Rating:  Initiated with ‘Buy’

Target Price: $41.00

Current Price: $31.13

The pluses: First Solar is  considered the bellwether in the downstream market, and with the downstream  names poised for stronger growth than upstream counterparts, this is a company  to watch. [….]

(Page 3:)  Advanced Energy Industries, Inc. [Ticker: AEIS]

Rating: Initiated with ‘Buy’

Target Price: $20.00

Current Price: $16.61

The plusses: Following recent restructuring efforts,  the Fort Collins, Col.-based company has become “a healthy cash generator” and  is well positioned to benefit from both commercial and utility scale projects in  North America. “Shares of AEIS are a  core holding for investors looking to gain exposure into the downstream solar  market while avoiding some of the pitfalls that have impacted the upstream  segment—i.e. the commoditization of the module business,” they said. [….]

(Page 4:)  SunPower Corp. [Ticker: SPWR]

Rating: Initiated with ‘buy’ and added to the “U.S. high conviction buy list.”

Target Price: $12.00

Current Price: $8.37

The plusses: Citigroup characterizes SunPower as  the perfect solar package, highlighting the company’s exposure to growth in  Japan through its partnership with Toshiba Corp. and  Sharp Corp. . Additionally, it is 66% owned by French oil giant Total SA,  creating an effective backstop. [….]

(Page 5:) MEMC Electronics Materials Inc. [Ticker: WFR]

Rating: Initiated at ‘Buy’

Target Price: $5.40

Current Price: $4.43

The plusses: The St. Peters, Missouri-based company  recently sold two European projects, reducing presence in the volatile Europe  area. Instead, the current pipeline for SunEdison — MEMC’s project-development  solar business — focuses on early high growth regions like the U.S., Canada and  emerging markets. The Citi analysts further pointed to a solid balance sheet and  strong cash flows, which should continue to improve. [….]

(Page 6:)  Trina Solar, Ltd. [Ticker: TSL]

Rating: Initiated at ‘HOLD’

Target Price: $6.00

Current Price: $5.44

The plusses: The Chinese company is one of the  higher quality solar-panel manufacturers in China and “is greatly leveraged to a  recovery as the sector works off excess inventory over the next few years,” according to the Citigroup analysts. [….]

(Page 7:)  Renewable Energy Corp. ASA [Ticker: NO:REC]

Rating: Maintained at ‘Buy’

Target Price: 2.50kr (Norwegian Kroner) =$0.45USD)

Current Price: 1.05kr (=$0.189USD)

The plusses: The Norwegian-based Renewable Energy  Corp. benefits from being the lowest cost producer of polysilicon,  a key component in solar panels, due to its cost-effective “fluidized bed  reactor” technology. Additionally, its downstream activities in Singapore should  show boost the financial results shortly. [….]

(Page 8:)  GCL-Poly Energy Holdings Inc. [Ticker: HK:3800]

Rating: Maintained at ‘Buy’

Target Price: 2.68HKD  (Hong Kong Dollars) =$0.35USD)

Current Price: 1.94HKD (=$0.254USD)

The plusses: Citigroup is broadly positive on the  Asia players and polysilicon producer GCL is  one of the region’s companies benefiting from local demand drivers and the  potential to profit from possible import tariffs. [….]

    Although I’m one of the last investors you’d expect to ‘hop in bed’ with solar energy production, storage, etc., I can be a sucker for an “off-the-grid” investment that I can afford; one that has an acceptable sized possible gain. 

Are you that kind of investor?!?

Your comments?

Til Nex’Time….

Reference “Lie-Barry:”