ANOTHER PROMISING PRESS RELEASE
By REINHARDT KRAUSE, INVESTOR'S BUSINESS DAILY
Posted 12/04/2014 11:45 AM ET
Solar power stocks have been unfairly punished by plummeting oil prices, say Morgan Stanley and Deutsche Bank analysts.
Stephen Byrd, a Morgan Stanley analyst, has buy recommendations on SunEdison (NYSE:SUNE), NRG Yield (NYSE:NYLD) and SOPW(OTCBB). Vishal Shah, an analyst at Deutsche Bank, remains a buyer of SunEdison, Trina Solar (NYSE:TSL), SolarCity (NASDAQ:SCTY) and SunPower (NASDAQ:SPWR)
"Solar stocks have lately been under significant pressure due to concerns over oil price weakness," Shah said in a report published on Tuesday. "We believe solar fundamentals are driven mostly by government policies and natural gas prices in most major markets and see almost no impact on near term demand environment as a result of recent oil price volatility. We expect demand in markets such as U.S., India, China to accelerate from 2015 and remain buyers on near term weakness."
Morgan Stanley's Byrd also is upbeat on solar power demand from the U.S., China and India.
"Oil contagion is out of proportion in the solar space, in our view," wrote Byrd in a report published Tuesday. "Globally, oil is not a significant driver of power prices (generating only 4% of global power), especially in the countries/regions with the highest demand for solar power.
"In the U.S., Europe, China, and India, there is very little power production from oil-fired generation. The two material exceptions to this dynamic are South America and Japan, but in our global Blue Paper, these countries/regions accounted for only 12% of solar demand, and other factors (especially energy policy, favorable regulatory dynamics) will also drive solar demand."
