With the help of positive earnings news from Trina and Yingli, volatile solar stocks are among the standouts (TAN +6%) on a very good day for equities.
SunEdison (SUNE +10.5%) is taking off with the help of a Morgan Stanley upgrade. Analyst Timothy Radcliff thinks the commercial-scale solar market could grow to 129GW by 2018, with a rush of activity prior to a 2017 federal tax credit cut. He also thinks SunEdison's solar project yieldco spinoff could sport a $1.6B valuation within 12-18 months, and notes such instruments "trade at premium valuations given [their] predictable and growing cash flows."
JinkoSolar (JKS +14.8%) is more than recouping yesterday's post-earnings losses with the help of positive commentary. Roth (Buy) notes Jinko's 2014 module guidance of 2.3GW-2.5GW beat the firm's 2.1GW estimate, and thinks Jinko is the first Chinese company to see its non-silicon processing costs drop below $0.40/watt.