- "We believe solar fundamentals are driven mostly by government policies and natural gas prices in most major markets and see almost no impact on near term demand environment as a result of recent oil price volatility," argues Deutsche's Vishal Shah, defending solar stocks after they were clobbered on Friday and Monday in the wake of OPEC's decision not to slash production.
- Shah expects strong 2015 solar demand in the U.S., China, and India, and thinks the U.S. market is especially well-insulated from falling oil prices, given local electricity prices are unlikely to drop near-term.
- He recommends buying SolarCity (SCTY), SunPower (NASDAQ:SPWR), SunEdison (SUNE), Trina (NYSE:TSL), and Vivint (NYSE:VSLR) on weakness. Shah, long a SolarCity bull, adds "improving financing costs and greater penetration in new states could continue to drive positive demand momentum" for SolarCity and Vivint.
- ETFs: KWT, TAN