Sector Snap: Solar energy stocks rise on leader's prospects

PacificCrest analyst Mark Bachman, in a client note about SunPower Corp., said domestic demand is "running ahead of expectations set just three months ago, attributed to the possible lapse of the investment tax credit. U.S. customers are pulling projects into 2008 to avoid the uncertainty."

Bachman also said strong Spanish demand stems from the current tariff structure, which terminates at the end of September.

As a result, the analyst said earnings per share for SunPower beat consensus estimates. Analysts polled by Thomson Financial expect second-quarter earnings per share of 46 cents and full-year 2008 results of $2.07 per share.

SunPower gets about 45 percent of revenue from the U.S. and 30 percent from Spain, Bachman said.

Among analysts reiterating "Buy" ratings on SunPower were Needham Equity Research analyst Pierre Maccagno, Lazard Capital Markets analyst Sanjay Shrestha, Jefferies analyst Paul Clegg, Piper Jaffray analyst Jesse W. Pichel Sr. and Merriman Curhan Ford analyst Brion D. Tanous.

SunPower shares rose $4.70, or 5.4 percent, to $91.47.

Shares of Evergreen Solar Inc. gained $1.23, or 3.9 percent, to $32.80, Suntech Power Holdings Co. Ltd. climbed $1.27, or 2.9 percent, to $45.72 and JA Solar Holdings Co. Ltd. added $1.42, or 5.9 percent, to $25.49.