CNBC Stock Blog

Solar Stocks' Demand Growth 100% this Year: Analyst


With pressures on energy, should investors put their money in solar stocks? Ahmar Zaman, solar analyst at Piper Jaffray, shared his best plays.

Bullish on Solar Stocks

“This is a great time for investors to get into the solar sector,” Zaman told CNBC.

“We see demand growth of over 100 percent this year and continued demand growth into 2011 in terms of pricing, we see pricing flat to up for the next few quarters.”

Zaman said stock valuations remain near trough levels and visibility has improved for the industry, so the risk-reward is “very favorable.”

Zaman initiated coverage of 12 solar stocks with an “outperform” rating last week. His favorite solar stocks include First Solar, Renesola, LDK Solar and Satcon Technologies.

“Solar is not the cheapest technology—wind is still cheaper—but from an investment perspective, we think solar is the best positioned.”

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Zaman does not own shares of FSLR, SOL, SATC, SPWRA or LDK. Piper Jaffray makes a market in the securities of FSL, SOL, SATC and SPWRA.

Piper Jaffray has investment banking clients who own shares of SPWRA and YGE.