Goldman starts U.S. solar sector with neutral
Goldman Sachs expects present factors like the euro volatility, declining subsidies in existing markets in Europe and financing uncertainty to resolve into a positive trend for the solar industry.
Analyst Mark Wienkes started First Solar Inc with a "buy" rating and named the stock his top pick, mainly on its low cost structure, while MEMC Electronic Materials Inc was initiated with a "sell" on its sub-peer margin recovery.
"In an increasingly competitive global market, solar panel manufacturers will need to lower costs by investing in R&D and capacity growth," Wienkes wrote in a note to clients.
Shares of solar power companies have been hit hard this year by a weak euro and concerns about Europe's stability, but demand has surged ahead of scheduled subsidy cuts in top markets of Europe.
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The Government of Alberta's operations have been powered 100 per cent with wind electricity since 2007. Upon the expiration of some of these contracts, they have been renewed to switch from wind to solar energy. The average contract pricing will be $0.048 per kilowatt…
