ReneSola (SOL - Get Report) led the losses, falling 14% to $3.08 by early afternoon. A day earlier, the Chinese solar products manufacturer announced it would shutter a polysilicon factory plant in Sichuan and recorded an impairment charge of $202.8 million for its third quarter as a result.
Credit Suisse remained bearish on ReneSola, reiterating an "underperform" rating and lowering its target price to $3 from $5.
"Bulls on SOL had argued that the company would benefit from rising prices of polysilicon in 2014-15, but the permanent retirement of 40% of polysilicon capacity now removes much of the potential upside," wrote analyst Brandon Heiken.Following ReneSola's lead, Yingli Green Energy (YGE - Get Report) plunged 9.7% to $4.58, Trina Solar (TSL - Get Report) tumbled 5.6% to $12.61 and Canadian Solar (CSIQ - Get Report) dumped 5.3% to $27.53. TheStreet Ratings team rates ReneSola Ltd as a Sell with a ratings score of D. The team has this to say about their recommendation: "We rate ReneSola Ltd (SOL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins."
- You can view the full analysis from the report here: SOL Ratings Report