Kaufman Brothers Crazy About Solar Stocks, Launches Almost Whole Sector at BUY

Kaufman Brothers is wild about the prospects for solar stocks. The only one it pans, in fact, is the darling First Solar.

Beacon Power (BCON): Buy, $3 target. Expects a commercial application for BCON’s eco-friendly products for the electric utility industry to be developed soon.

Evergreen Solar (ESLR): Buy rating, $18 target. Expects this vertically integrated Solar manufacturer to benefit from reduced raw material costs.

Cree (CREE): Buy, $36 target. Cree manufactures Light-Emitting Diodes (LEDs), which the green movement thinks could replace light bulbs. Kaufman thinks this could be a $10 to $20 billion proposition.

American Superconductor (AMSC): Buy, $37 target. Purest play on wind power in the U.S.

Akeena Solar (AKNS): Buy, $12 target. Akeena makes solar panels designed for residential use. KB likes AKNS’ product line, which it thinks has an aesthetic appeal which will capture share and instill brand loyalty.

SunPower (SPWR): Buy, $120 target. Kaufman’s models show SPWR doubling capacity in 2008 and surpassing FSLR in revenue in 2009.

MEMC Electronic Materials (WFR): Buy, $80 price target. KB sees the market environment for WFR’s products (silicon wafers for solar panels) improving over the next 18 to 24 months.

Applied Materials (AMAT): Hold, $19 target. Cautious because AMAT’s core business, semiconductor fabrication equipment, is sputtering at the moment.

First Solar (FSLR): Hold, $260 price target. FSLR’s sales growth stalling and KB doesn’t think that the company can capture much more share.

See Also: Citi Loves First Solar


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