Wunderlich Securities released a note on GT Solar on Wednesday morning stating that its valuation was a steal based on the likelihood of an acquisition by a larger equipment company.
In the case of First Solar, Piper Jaffray is betting that its upcoming annual guidance conference call will be a catalyst for shares to move higher.
GT Solar shares were up more than 5% in early trading on Wednesday.First Solar shares were up a more modest 2%, but still the only other considerable gainer among U.S. solar stocks. Wunderlich analyst Theodore O'Neill wrote on Wednesday morning, "Investors should take a hard look at the unusual valuation of GT Solar (SOLR) stock relative to its peers. At the current valuation of 5.7x our 2011 EPS estimate of $1.37, an acquisition of GT Solar by almost any equipment company would be immediately accretive even at twice the price (assuming redundancies were eliminated)." Likely acquirers of GT Solar, according to Wuderlich, are semiconductor or solar equipment makers. Amtech Systems (ASYS), Applied Materials (AMAT), BTUI (BTUI) and Novellus (NVLS). Wunderlich argues that paying a 2x premium to the current GT Solar share price would still be accretive for the acquiring company. General analyst expectation ahead of the First Solar annual conference call -- it's simply a conference call this year and not an actual investor day as in past years -- is for a positive catalyst, though whether it's just for First Solar or for the solar stock group as a whole remains open to debate. First Solar will be hosting the call on the afternoon of Dec. 14. Piper Jaffray is betting that the call will be a positive for First Solar shares specifically, starting the revenue and EPS guidance for 2011 above the Street consensus $3.6 billion and $8.50..
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV