Thursday, February 10, 2011

Goldman Sachs: Investors Should Take Advantage of Solar Stocks

In what could be good news for the solar industry, stocks of solar companies rallied last Wednesday; the rise was led by a forecast from silicon maker MEMC Electronic Materials that beat economists' expectations, and a report from Goldman Sachs that urged investors to buy shares of First Solar, the largest global solar panel manufacturer.

MEMC is a Missouri-based maker of the raw material used in the manufacturing of solar panels and its 2011 revenue forecast handily beat what many analysts expected; after it announced its projections on Tuesday, its stock jumped by more than 11 percent in trading on Wednesday.

MEMC is set to benefit from lower costs in solar materials and a strong pipeline in its SunEdison power plant business, Reuters reports. Moreover, shares from Arizona-based First Solar climbed more than five percent in trading on Wednesday, reaching their highest levels since July 2009 on the Goldman report.

In a report, Goldman analyst Mark Wienkes recommended buying First Solar stock, affirming that the company has "the largest, most credible pipeline of utility-scale projects." Furthermore, Goldman stated that many stocks for solar companies are at or near record lows, presenting a good buying opportunity for investors.


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