Sector Snap: Solar Stocks Mixed On Earnings News

NEW YORK (AP) — Solar stocks were mixed on Thursday as two solar companies reported quarterly results and analysts raised concerns about near-term challenges for solar companies.

Solar panel product maker Energy Conversion Devices Inc. posted a fiscal fourth-quarter loss, driven by hefty one-time charges and a sharp drop in demand for solar products as commercial construction declined, building owners deferred reroofing projects and project financing constraints continued.

China Sunergy Co. Ltd. said its second-quarter profit fell 43 percent but stronger shipments pushed results beyond analyst expectations.

Solar companies have been pummeled by industry-wide price cuts for solar panels, driven by an oversupply of product, scaled-back demand and the falling price of polysilicon, a key raw ingredient.

Credit Suisse analyst Satya Kumar cut his price target for Suntech Power Holdings Co. Ltd. to $12.50 from $16.50, citing the solar power company's sharp second-quarter profit drop. The company also estimated a 15 percent to 20 percent decline in average selling price in the third quarter.

Kumar said he prefers shares of Trina Solar Ltd. over Suntech, given Trina's stronger growth in shipments and lower polysilicon to panel cost structure. Kumar rates Suntech "Neutral."