Goldman starts U.S. solar sector with neutral

subscribe

The brokerage said utility projects in the U.S. and investment in China will drive solar market toward parity from subsidized markets by 2012 to 2015, earlier than what is expected currently.

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.

Related News

ontario power lines

Ontario takes constitutional challenge of its global adjustment electricity fee to Supreme Court

TORONTO - The Ontario government wants the Supreme Court of Canada to weigh in on a constitutional challenge being brought against a large provincial electricity charge, a case the province claims raises issues of national importance.

Ontario’s attorney general and its Independent Electricity System Operator applied for permission to appeal to the Supreme Court in January, according to the court’s website.

The province is trying to appeal a Court of Appeal for Ontario decision from November that said a legal challenge by Hamilton, Ont.-based National Steel Car Ltd. should be sent back to a lower-court for a full hearing.

Court reinstates constitutional challenge…

READ MORE
Jessica McDonald bc hydro ex-president

Former B.C. Hydro CEO earns half a million without working a single day

READ MORE

The European Union

EU draft shows plan for more fixed-price electricity contracts

READ MORE

vancouver-reversal-on-gas-appliances

Vancouver's Reversal on Gas Appliances

READ MORE

ontario hydro

Ontario will not renew electricity deal with Quebec

READ MORE