Shares of solar companies ticked higher Monday as analysts become more optimistic about prospects for global growth in demand for solar energy products.
Credit Suisse analyst Satya Kumar said that talks with industry officials last week at a major German solar technology conference convinced him to increase his estimate of total 2008 demand for solar energy products to about 4.6 gigawatts from 4.2 gigawatts. A gigawatt is 1 billion watts.
"We believe global demand is tracking much better than expected due to strength in Italy and other geographies," he wrote in a client note.
He also said the sector's prospects are being boosted by high natural gas prices.
As a result, Kumar raised his rating on shares of SunPower Corp. to "Outperform" from "Neutral."
Cowen and Co. analyst Rob Stone said most U.S. solar stocks remain undervalued.
In late afternoon trading shares of Energy Conversion Devices Inc. surged $10.38, or 15.5 percent, to $77.42, after hitting a 52-week high of $77.45 earlier in the session. SunPower Corp. added $6.01, or 7.7 percent, to $83.76, First Solar advanced $2.84 to $277.23 and Canadian Solar Inc. gained $2.08, or 5.3 percent, to $41.08.
Terms & Conditions
RSS Headlines
Fool UK