Guggenheim Solar ETFNYSEARCA
Thu, Oct. 6, 3:24 PM
- Formerly bearish Axiom Capital analyst Gordon Johnson upgrades his rating on the solar energy sector (TAN +0.5%) by two notches to Overweight from Underweight, and raises his ratings on Yingli Green Energy (YGE +4.6%), Trina Solar (TSL +1.3%) and JA Solar (JASO +4.5%) to Buy from Sell, as well as SolarCity (SCTY -2.6%) to Hold from Sell.
- A key reason for Johnson's "new-found solar optimism" is China's decision to cut solar subsidies, which could result in ~25 GW of Chinese “pull-in” demand in H1 2017, suggesting a undersupply in the solar market that should push prices higher.
- Johnson believes the stronger demand will cause the prices of all kinds of solar equipment to surge, resulting in higher margins and multiples for many solar companies.
- Also: OTCPK:SUNEQ +63% (see earlier), CSIQ +0.7%, SPWR +0.3%, FSLR -0.3%.
Fri, Sep. 30, 2:19 PM
- China reportedly has proposed a cut of as much as 40% in subsidies for solar projects (TAN +0.1%), renewing concerns about waning state support for clean power after years of rapid investment in capacity.
- A draft document reviewed by local media showed China's top central planner is considering cutting the subsidy to $0.20/kwh from $0.42 now.
- The Chinese government has been running a deficit subsidizing renewable energy; Morgan Stanley says the country's renewable energy fund now has a 55B yuan deficit.
- Shares of Hong Kong-listed Chinese renewable energy companies, such as China Longyuan Power (OTCPK:CLPXF), fell as much as 10% on the news.
Fri, Sep. 16, 4:36 PM
Thu, Sep. 8, 12:58 PM
- The tough environment for solar stocks (TAN +0.7%) will continue for another 18 months, but falling solar stocks may have created buying opportunities among some of the top names in the space, according to analysts at JMP Securities.
- Until the overall solar market improves, JMP prefers stocks that are gaining market share and have favorable competitive positioning, adding that further consolidation in the sector is likely.
- JMP rates Vivint Solar (VSLR +4.4%), Sunrun (RUN +1.4%) and Solaredge Technologies (SEDG +0.2%) at Market Outperform, Canadian Solar (CSIQ +1.5%) at Market Perform, and First Solar (FSLR -0.5%) and SunPower (SPWR -1.3%) at Underperform.
Wed, Aug. 24, 11:57 AM
- Solar manufacturers (TAN +0.2%) racing to build bigger and more advanced factories to crank out panels faster and cheaper are about to face a looming glut just as the panels start rolling off the assembly line, according to a Bloomberg report.
- At the same time, demand is slowing in China, the world’s largest market, where the government is reducing subsidies for solar farms commissioned after June 30, which fueled a rush of projects during H1 as developers added as much as 22 GW before the subsidy expired.
- Canadian Solar (CSIQ -2.3%) is building a a 350 MW facility in Brazil, and JinkoSolar (JKS -1.2%) is expanding output from a 450 MW factory that went into operation in Malaysia last year.
- Trina Solar (TSL -0.2%), the world’s largest panel maker, said yesterday that Q3 shipments would fall as much as 6.5% to 1.55-1.65 GW, while it has increased production capacity 7.1% after opening a 500 MW factory in Thailand in March; Yingli Green Energy (YGE -1.7%) said yesterday that it expects shipments to slip as much as 54% in the current quarter.
Fri, Aug. 12, 6:16 PM
Sat, Aug. 6, 1:55 AM
Wed, Aug. 3, 2:38 PM
- The solar industry (TAN +1.5%) is facing a "challenging" time ahead, and solar companies likely will be hurt by tighter regulations going forward, Morgan Stanley warns, adding that China, Japan and Europe are the markets most likely to be affected but that the U.S. also faces "tactical regulatory headwinds in the near-term."
- Stanley downgrades Canadian Solar (CSIQ -0.4%) to Underweight from Overweight with a $12.80 price target, slashed from $24, as one of the companies most at risk from coming pricing pressures.
- However, the firm believes sales diversity and focus on systems put SunPower (SPWR +1.9%) in a favorable position ahead of the tough oversupply environment in 2017, and likes JinkoSolar (JKS +1.5%) as the preferred choice among Chinese module manufacturers; both companies are maintained at Overweight but with reduced price targets of $27 for SPWR and $27.20 for JKS.
- Meanwhile, advances that First Solar (FSLR +3%) plans to make to its modules should enable its margins to rise in 2019-20, the firm says, rating shares at Equal Weight with a $59 price target, cut from $63.
Fri, Jun. 10, 4:20 PM
Fri, Jun. 3, 4:16 PM
Fri, May 20, 4:15 PM
Fri, May 13, 4:16 PM
Fri, May 6, 4:26 PM
Thu, Mar. 24, 5:51 PM
Wed, Mar. 23, 3:05 PM
- Like many other energy names, solar stocks are underperforming (TAN -3.8%) on a day oil prices are giving back some of their recent gains. WTI crude is down 4.3% to $39.69/barrel, and Brent crude down 3.2% to $40.45/barrel. The S&P is down 0.6%, and the Nasdaq down 1%.
- SunEdison (down 12.1%) is among the casualties, as liquidity/solvency fears continue surrounding the beaten-up solar/wind project developer. SunEdison yieldcos TerraForm Power (TERP -3.3%) and TerraForm Global (GLBL -4.7%) are also off.
- SolarCity (SCTY -9.6%), which yesterday afternoon announced the closing of a $131M tax equity solar project fund, is also off sharply. Other notable decliners include SunPower (SPWR -7.4%), First Solar (FSLR -4%), Canadian Solar (CSIQ -4.2%), Sunrun (RUN -4.3%), Enphase (ENPH -6.5%), Daqo (DQ -5%), JinkoSolar (JKS -5.9%), Sky Solar (SKYS -11.1%), and former SunEdison acquisition target Vivint Solar (VSLR -11.3%).
Fri, Feb. 26, 4:28 PM