With the price of solar panels falling, industry watchers say now may be a good time for consumers to take a look at the technology.
Analysts Paul Clegg at Jeffries & Company and Vishal Shah of Barclays Capital shared their sector strategies and stock picks. (See their Buy, Sell and Hold calls, below.)
“We’ve seen a significant amount of [panel] supply coming online,” Shah told CNBC.
“I think there is going to be a more balanced supply-and-demand outlook for some of the low-cost solar manufacturers, but not for everyone.”
Shah said the falling price of solar panels will benefit solar stocks and has a positive outlook on the sector in the near-term.
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Clegg, on the other hand, is more negative on the solar area.
“We’re still on the sell side,” he said. “We don’t agree that the capacity is absorbed. We think that there’s still a significant amount of overcapacity in the sector and we’d be concerned about the fact that a lot of the companies in this industry are pricing very aggressively.”
Clegg’s Recommendations:
"Buy" rating on MEMC Electronic Materials
"Hold" rating on First Solar and SunPower.
"Sell" rating on Suntech Power and Energy Conversion Devices.
Shah’s Recommendations:
"Buy" rating on Yingli Green Energy .
"Hold" rating on First Solar and Sun Power.
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Disclosures:
No immediate information was available for Clegg or Shah.
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CNBC Slideshows:
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