4 Solar Stocks Hit By Bearish Analyst Notes

Analysts are lowering their expectations on a number of solar stocks

Josh Selway
Aug 5, 2016 at 9:51 AM
facebook twitter linkedin


Solar stocks are in analysts' crosshairs this morning, with SunPower Corporation (NASDAQ:SPWR)ReneSola Ltd. (ADR) (NYSE:SOL)JinkoSolar Holding Co., Ltd. (NYSE:JKS), and First Solar, Inc. (NASDAQ:FSLR) all getting hit with bearish notes -- though that's not entirely surprising. Let's take a look at how analysts are positioning themselves on SPWR, SOL, JKS, and FSLR. 

SPWR saw its price target cut to $28 from $33 at J.P. Morgan Securities, though the brokerage firm maintained its bullish "overweight" rating. The downbeat note isn't too shocking, considering the stock has lost more than half its value in 2016, last seen at $14.46. This adds to the evidence more bearish notes could be forthcoming

For instance, SPWR's average 12-month price target stands at $28.92 -- double the stock's current price. What's more, 13 of 15 brokerage firms recommend buying SunPower Corporation (NASDAQ:SPWR), with zero "sell" ratings on the book. It wouldn't be surprising if additional price-target cuts and/or downgrades were to come through. 

As for SOL, Roth Capital downgraded the stock to "sell" and slashed its price target to $1 from $1.45. The shares are flat so far today at $1.21, with their year-to-date deficit sitting at 29%. Nonetheless, short interest has plummeted on ReneSola Ltd. (ADR) (NYSE:SOL) since last August, dropping by 78%. 

Roth Capital also downgraded JKS, lowering its opinion to "neutral," and cutting its price target to $18 from $30. The stock is now down 31% in 2016, including today's 0.4% loss to trade at $18.98. JinkoSolar Holding Co., Ltd. (NYSE:JKS) is certainly vulnerable to additional downgrades, as every single covering brokerage firm rates it a "strong buy." Plus, the solar stock's consensus 12-month price target stands well overhead at $29.34. 

Finally, Macquarie lowered its price target to $73.50 from $80.18 on FSLR, adding to the negative attention that's come the stock's way following the company's earnings release Wednesday night. The stock is currently trading at $44 -- a nearly 41% drop from its March peak of $74.29 -- and could be pressured lower in the near term by additional bearish notes. Eight of 17 brokerage firms still recommend buying First Solar, Inc. (NASDAQ:FSLR), and the stock's average 12-month price target stands all the way up at $62.70. 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter