If any industry has been put through the wringer this year, it has been clean technology, which includes many of the top solar stocks. Even though the demand for clean technology is increasing every year, the stocks have been absolutely hammered in 2015, and they may be presenting aggressive investors with the best entry points since early in 2013.
In a new research report, Deutsche Bank analysts say that they expect solar companies to present a relatively upbeat industry outlook during the upcoming Solar Power International conference in Anaheim, Calif., next week. With fundamentals accelerating and module pricing remaining relatively stable, they remain very bullish. They also point out that the recent volatility in the market and China has not had an impact on downstream projects.
The Deutsche Bank team remains positive and thinks the big sell-off in the sector provides a very attractive entry point for aggressive investors looking to own the sector leaders. We picked three of the five the firm is positive on that may have the best upside potential. We also recently covered six stocks that are poised to outperform next year.
This top solar company has been absolutely destroyed, down over 65% since July, after pushing higher since the beginning of the year. SunEdison Inc. (NYSE: SUNE) manufactures solar technology and develops, finances, installs and operates distributed solar power plants, delivering predictably priced electricity and services to its residential, commercial, government and utility customers. SunEdison also provides 24/7 asset management, monitoring and reporting services for hundreds of solar systems worldwide via the company’s Renewable Operation Center (ROC).
SunEdison and its yieldco company TerraForm Power Inc. signed a definitive agreement in November to acquire First Wind for a total sum of $2.4 billion. The combined entity became one of the largest clean energy companies in the world.
The company also bought Vivint Solar in a cash, stock and convertible securities deal. It was a deal that some on Wall Street thought was ill-advised, and some investors are wary of the buying binge and do not feel the company has the profits to support all the transactions. Plus, when it reported second-quarter results, revenues were higher than last year, but the net loss was massive.
Deutsche Bank has the stock rated Buy with a $28 price target. The Thomson/First Call consensus target price is $27. The shares closed trading Monday at an incredibly low $10.60.