Crude
oil prices have been
surging recently, and there is little
sign that the momentum will be
slowing down. Every time crude oil
reaches these types of elevated levels,
it seems that interest in
alternative forms of energy also rise.
Solar is one type of alternative energy
that gets particular attention, and
should be on investors' radar going
into 2014.
You can also check previous stocks to buy reports- Right Here
SolarCity +2.4%; BofA reiterates $95 target, sees many catalysts
- Believing "numerous catalysts" exist for the next 6-9 months, BofA/Merrill (Buy) is holding onto its $95 SolarCity (NASDAQ:SCTY) target (71% above current levels).
- Among the potential catalysts: 1) Clarity on California's solar retail rates and net metering policies. 2) Improved booking/installation mix leading to better retained value. 3) The arrival of 2016 installation guidance (possibly in Q4). 4) The "emergence of a cash flow oriented view of [SolarCity's] operating systems."
- The firm values SolarCity's existing operating business at $40/share. It assigns a $55/share valuation to its solar development ops, which was forecast to deliver 15.4GW of installations from 2018-2024. BofA sees SolarCity ending 2016 with 3.1GW of cumulative leased installations that will respectively produce $355M and $200M in unlevered and levered cash flow.
- Also: Though admitting Arizona's policies are a setback - SolarCity has sued a local utility for placing ~$50/month in surcharges on new solar installations - BofA notes "constructive regulatory frameworks" have emerged elsewhere. SA author Simple Investment Ideas argued yesterday Arizona-like utility charges won't hold up long-term.
- Smaller rival Vivint (VSLR +3.2%) has joined SolarCity in rallying.
Below these are the Solar stocks I am follow on 2015.
Solar Stocks List
Solar Pure Plays:
•SunPower Corporation (Nasdaq: SPWR)
•First Solar Inc. (Nasdaq: FSLR)
•Evergreen Solar (Nasdaq: ESLR)
•SunTech Power Holdings (NYSE: STP)
•Trina Solar (NYSE: TSL)
•Canadian Solar Inc. (Nasdaq: CSIQ)
•JA Solar Holdings (Nasdaq: JASO)
•China Sunergy (Nasdaq: CSUN)
•LDK Solar (NYSE: LDK)
•ReneSola Ltd. (NYSE: SOL)
Smaller companies with Solar exposure:
•Hoku Scientific (Nasdaq: HOKU)
•Daystar Technologies (Nasdaq: DSTI)
•Spire Corporation (Nasdaq: SPIR)
Solar Energy ETFs:
•Market Vectors Solar Energy ETF (KWT)
•Claymore/MAC Global Solar Energy (TAN)
Bigger companies with Solar exposure:
•MEMC Electronics (NYSE: WFR)
•General Electric Co. (NYSE: GE)
•Boeing Co. (NYSE: BA)
•British Petroleum (NYSE: BP)
•Royal Dutch Shell (NYSE: RDS-B)
•Kyocera (NYSE: KYO)
•Applied Materials (Nasdaq: AMAT)
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