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