Suntech Can’t Shake Cloud Hanging Over Solar
Suntech Power‘s (NYSE:STP) stock continued its slide last week despite the company expressing hope that the U.S. market for solar panels would more than double in 2011. [1] Shares of solar PV manufacturers have come under pressure as European markets continue to suffer because of the turmoil in the region. The negative sentiments were intensified on Monday as competitor Canadian Solar cut its margins forecast for its Q3 results. Earlier this week Suntech’s Chief Commercial Officer Andrew Beebe estimated that the North America market could grow to 2.2 – 2.3 GW this year, but that wasn’t enough to stop solar stocks’ downward spiral.
Prices of modules have fallen by almost 35% in 2011 as Italy and Germany pulled back subsidies and demand fell while many players brought new capacity on line in the same period resulting in significant oversupply. Suntech also revealed that it was not planning to increase its capacity any further.
Suntech also celebrated its 10th anniversary earlier this week, announcing that 5GW of panels built by the company had been installed around the world.
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We have a $4.43 price estimate for Suntech, which is double its current market price.
Click here for our full analysis of Suntech.
Notes:- Suntech sees stronger U.S. solar growth, Reuters [↩]