There were a few upgrades and downgrades of green stocks today,particularly in the solar space that I wanted to run through tonight.
Macquarie made a few calls in the solar space worth mentioning:
Yingli Green Energy (YGE) was upgraded from Neutral to Outperform. Shares finished up more than 5% and bounced off the 50 day movingaverage.
Sunpower (SPWRA) was upgraded from Underperform to Neutral. Sharesfinished up nearly 7% today and are nearing resistance of the July andSept highs.
Suntech Power (STP) was downgraded from Neutral to Underperform, butshares held up today by closing in the green and remain above the 200day moving average.
First Solar (FSLR) was downgraded from Outperform to Neutral, butshares shook off the downgrade closing up a few percent to above 150once again.
Broadpoint reiterated its Buy rating on Sunpower (SPWRA) and raised estimates due to strong European demand. Hat tip to StreetInsider.com for the following analyst comments:
“We are moving our Q309 estimates higher due to better than expecteddemand in Germany and Italy. In addition, we now believe the risk toour FY10 estimates is to the upside given an expanding utility-scalepipeline and strength in the US ahead of ITC grant expiration, alongwith an improving commercial installation financingenvironment…Sentiment remains negative towards SPWRA/B, which webelieve helps limit risk to the downside when coupled with improvingdemand and expanding operating margins in 2010. We would own SPWRA/Bahead of significant growth in 2010 with estimate revision bias to theupside.”
Merriman Curhan Ford reiterates its Buy rating on Cree (CREE). Again, hat tip to StreetInsider.com for the following analyst comment:
“We are expecting C2H09 revenue and EPS upside driven by demand forCree’s LED chip and component business from TV backlighting andoutdoor/indoor lighting, respectively. Cree is expected to report itsSeptember quarter results on October 20 after the market close where weexpect both earnings upside and a positive outlook for 2010. Given theacceleration in LED adoption, we are raising our revenue outlook forFY10 to $720M from $700M (the consensus is at $697M) but aremaintaining our $1.00 EPS estimate (the consensus is at $0.92) giventhe higher share count. We are raising our FY11 EPS estimate to $1.30from $1.25 (the consensus is at $1.20) and introducing a FY12 revenueforecast at $1,075M and an EPS of $1.60.”
CREE has been on a torrid run this year, nearly tripling in price. It was up another 2% today and is closing in on the 2004 highs. I’m aseller on any spike after earnings.