Sector Snap: Solar energy products makers rise

Shares of solar energy products makers rose Wednesday after an analyst upgraded shares of a solar wafer maker and another analyst praised the sector's strong fundamentals.

Jefferies & Co. analyst Paul Clegg raised Evergreen Solar Inc. to "Buy" from "Hold" in a note to investors, saying the stock's recent price decline makes it an attractive buy.

Evergreen shares rose 99 cents, or 11.9 percent, to $9.45. The stock ended Tuesday's trading down 55 percent from a 52-week high of $18.85 in December.

Meanwhile, Citigroup analyst Jim Liang told clients that "solar fundamentals are currently very strong, with the rising tide lifting all boats, driven by generous feed-in tariffs on the demand side and tight poly(silicon) on the supply side."

Polysilicon is a key ingredient in solar cells.

Liang singled out Suntech Power Holdings Co. Ltd. as a favorite because weakening prices in the second half of the year could shake out the industry and leave Suntech in a stronger relative position.

The company "is well positioned to become the low-cost leader, driven by its scale, roadmap for higher cell efficiency, and attractive poly(silicon) pricing through long-term contracts."

Suntech shares rose $3.23, or 7.2 percent, to $48.06.

Elsewhere in the sector, shares of SunPower Corp. rose $5.79, or 6.4 percent, to $95.66; First Solar Inc. rose $11.44, or 3.8 percent, to $315.51; JA Solar Holdings Co. Ltd. rose $1.61, or 6.8 percent, to $25.28; and Akeena Solar Inc. rose 43 cents, or 8.1 percent, to $5.72.