AmTech sees Trina Solar’s (TSL) strength in Italy as a great sign for SunPower (SPWR) and other solar companies positioned to take advantage of growth in Italy:
TSL recently announced it has signed a sales agreement with ERGYCA Power Srl (subsidiary of GreenergyCapital SpA) for module sales in Italy. It is a 3 year fixed-price agreement for PV modules totaling $158M. Assuming a $3.75 ASP/w, it equates to 42MW of supply over three years. We view this as relevant given the entire Italian market totaled ~70MW in 2007.
We view this announcement as increased evidence the Italian market is continuing to gain traction in the 2H08 and beyond to help supplement any potential fall off in Spain post September 2008. We view this announcement as an incremental positive for TSL, as well as those companies well positioned for the Italian market, including SPWR.
AmTech believes Italy is the “heir apparent” to Spain in the European solar market, partly because of the country’s attractive solar subsidies.
AmTech reiterates BUY on SPWR.
Trina Solar (TSL) is unrated.
First Solar (FSLR) Gets Help From NYT’s Thomas Friedman (FSLR, SPWR)
First Solar (FSLR) and SunPower (SPWR): US Solar Legislation Stalls Again (FSLR, SPWR)
We Love Evergreen Solar (ESLR) and SunPower (SPWR), But First Solar (FSLR) is a Dog (FSLR, ESLR, SPWR)
SunPower (SPWR) Upgraded As Pricing and Demand Better Than Expected (SPWR)
Business Insider Emails & Alerts
Site highlights each day to your inbox.