AllThingsD » Vishal Shah

China Solar Stocks: Barclays Says Buy Yingli, Sell Solarfun

Eric Savitz — Mon, 09 Feb 2009 22:36:55 +0000

Barclays Capital analyst Vishal Shah this morning picked up coverage of a half-dozen China-based solar stocks. His general view is that the stocks will be hampered in the near term by falling Street estimates and excess channel inventory, but that some stocks could outperform as polysilicon supply improves. Here’s a rundown on his new coverage:

Yingli Green Energy (YGE): Overweight rating, $12 target. “Yingli has [the] industry leading nonsilicon cost structure and among the highest exposure to declining spot silicon prices.”

Solarfun Power (SOLF): Underweight rating, $3.50 target. “Lack of sufficient cash balance, relatively low brand differentiation and downside risk to estimates could lead to share price underperformance.”

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Dueling Solar Views: Pricing vs. Market Share

Tiernan Ray — Thu, 09 Oct 2008 19:53:53 +0000

Today’s dispatches from the land of the sun reflect caution and opportunity as regards the solar energy technology business. Analyst Gordon L. Johnson with Hapoalim Securities writes in an initiation-of-coverage report on the solar stocks that the credit crunch could hurt solar panel demand because installation of panels is funded up to 70 percent by debt. Johnson’s report, titled “Dancing in the Dark,” specifically recommends an “Underperform” rating on Suntech Power Holdings (STP), with a price target of $16.

Conversely, Lehman–I mean, Barclay’s Capital–research analyst Vishal Shah writes in a note today that he is lowering his estimates for First Solar (FSLR), dropping his 2008 profit per share estimate from $3.78 to $3.60, and from $7.50 to $6 in 2009, and from $11 to $9 in 2010, given reduced expectations for foreign exchange benefit thanks to a “deteriorating Eurozone outlook.”

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Solar Shares Jump; Senate Adds Solar ITC to Bailout Bill

Eric Savitz — Wed, 01 Oct 2008 13:41:01 +0000

Solar industry shares are off to a rousing start this morning on news that the Senate plans to add the stalled “tax extender” legislation, which includes an eight-year extension to the solar investment tax credit to the pending bailout bill for the financial sector.

In a research note this morning, Cowen’s Robert Stone notes that the Senate will add the tax extenders to the bill, which the Senate is expected to vote on later today. Vishal Shah, solar analyst at Barclays, asserts in a note this morning that Senate approval of the bill could be followed by a House vote on the measure as soon as tomorrow.

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Solar Shares Collapsing; Where's the Bottom?

Eric Savitz — Tue, 09 Sep 2008 22:09:55 +0000

As far as I can tell, the sun is operating normally.

But you might think otherwise, judging from this week’s action in solar stocks. The sector, which suffered considerable losses yesterday, today went into freefall, with many names in the sector suffering losses of more than 10 percent. Exactly why investors decided to bail on the stocks today is unclear, but there are a number of factors that appear to be contributing to the current solar scare.

Lehman analyst Vishal Shah wrote a note on the solar sector that, in general, was quite bullish and, in fact, repeated his recommendations on First Solar (FSLR), SunPower (SPWR), Suntech (STP) and JA Solar (JASO). But Shah also noted that most solar companies have provided “somewhat aggressive guidance” for 2009 on the assumption that poly supply would become readily available from the spot market or silicon partners.

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Solar Stocks Feel the Heat: Report Spain Plans Subsidy Cut

Eric Savitz — Tue, 01 Jul 2008 21:02:14 +0000

Solar stocks are again feeling the heat from a report that Spain plans sharp reductions in subsidies for solar power. On Friday, a number of solar stocks dropped sharply after Lehman’s Vishal Shah asserted in a research note that the country was considering sharp cuts in its solar subsidy program. Today, there were further reports on the same theme.

According to Bloomberg, the Spanish newspaper Cinco Dias reported that the Spanish industry ministry is considering cutting the electricity rate paid to photovoltaic installations by as much as 35%.

The story reports that the ministry would set a limit of 300 megawatts of new capacity for the industry for next year, 200 for roof-top installations and the rest for ground equipment. The new tariff would be 33 Euro cents per kilowatt-hour for roof installations and 29 cents for ground panels, down from about 45 cents. (Shah last week had said the proposal could be 33 cents for roof-top installations, and 25 euro cents for ground-mounted.)

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