Sector Snap: Solar stocks up on positive analyses

Pacific Crest analyst Mark Bachman began covering Evergreen Solar Inc. with a "Buy"-equivalent rating on the shares and a $17 price target, implying growth of nearly 90 percent over its closing price Wednesday of $9.15.

He said Thursday in a client note that the vertically integrated company is one of the main low-cost producers in the sector.

Bachman said the company should be able to reduce the silicon content of its solar wafers to 2.5 grams per watt, or 13 cents per watt. That contrasts with the current industry average of about 7 grams per watt, or 35 cents per watt. Silicon is one of the industry's main expenses.

Deutsche Bank-North America analyst Steve O'Rourke said First Solar Inc.'s new Malaysian factory is advancing ahead of schedule and reiterated his "Buy" rating on the stock.

First Solar is among the least vulnerable solar companies to the current uncertainty over the future of government incentives in the U.S. and Spain, O'Rourke said.

"We continue to believe First Solar is uniquely positioned to weather a potential industry shakeout and deliver upside to estimates over the coming quarters and years," he wrote Wednesday in a client note.

He has a $300 price target on the stock, which implies upside of 18.5 percent over its finishing price Wednesday of $253.19.

In afternoon trading, shares of Evergreen Solar gained 36 cents, or 3.9 percent, to $9.51; First Solar advanced $12.81, or 5.1 percent, to $266; Energy Conversion Devices Inc. added $2.87, or 4.5 percent, to $67.11; Canadian Solar Inc. rose $1.40, or 3.8 percent, to $38.29; and Applied Materials Inc. added 67 cents, or 3.6 percent, to $19.41.