Seeking Alpha

Solar stocks rally; Deutsche upbeat on YieldCo potential

  • "We are becoming increasingly constructive on the solar sector as we expect further tightening of the solar supply/demand balance and expect increased investor interest driving valuation multiple expansion," says Deutsche, which last month struck a far more cautious tone on the industry.
  • The firm adds it expects "the emergence of 5-6 publicly traded [solar project] YieldCos over the next 12-18 months to act as a robust growth enabler." It has upgraded SunEdison (SUNE +6.4%), which recently filed an S-1 for its TerraForm Power (TERP) YieldCo, to Buy.
  • YieldCo momentum is seen growing ahead of potential 2016 U.S. solar tax credit changes, and greater international activity is expected to start in 2015, as grid parity is reached in more markets.
  • Notable gainers: FSLR +3%. SPWR +4.7%. CSUN +5.2%. SOL +4.8%. RGSE +3.4%. HSOL +3.4%. YGE +3.3%. CSIQ +3.1%.
  • SunPower might also be getting a lift from news of a $200M, 2-year loan program with Admirals Bank to finance U.S. residential solar projects. SunPower has already reached residential financing deals with Google and BofA/Merrill this year.
  • Solar ETFs: KWT, TAN
Comments (5)
  • Michael Bryant
    , contributor
    Comments (5744) | Send Message
     
    "SunEdison (SUNE +6.4%), which recently filed an S-1 for its TerraForm Power (TERP)"
    So does that mean (SUNE) will spin off (TERP)?
    16 Jun 2014, 11:45 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (918) | Send Message
     
    Looks like they're selling a minority stake. Before the S-1 filing, SUNE said they'd sell a 20%-30% stake in their YieldCo.
    16 Jun 2014, 11:51 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5744) | Send Message
     
    "SunPower might also be getting a lift from news of a $200M, 2-year loan program with Admirals Bank to finance U.S. residential solar projects."
    Great! Long (SPWR). Who's going to install the panels?
    16 Jun 2014, 11:47 AM Reply Like
  • clack
    , contributor
    Comments (31) | Send Message
     
    5 year high and rising for SPWR this morning. With the large short position on the stock this could get very interesting.
    16 Jun 2014, 01:18 PM Reply Like
  • jazzfan1
    , contributor
    Comments (93) | Send Message
     
    Deutsche`s worries about especially chinese solars were the best joke so far in 2014.
    I think they wanted some stocks cheaper to buy ...IMO
    16 Jun 2014, 01:26 PM Reply Like
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