This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Analysts' Favorite Solar Stock for 2014

NEW YORK (TheStreet) -- SunEdison (SUNE - Get Report) is analysts' top solar stock for 2014, as analysts see the St. Peters, MO-based company as best-positioned to benefit from an expected surge in demand for sun power.

Thirteen analysts rate SunEdison a "buy," compared to just three "hold" ratings and a single sell. That adds up to a consensus rating of 4.41 out of 5, according to Bloomberg's scoring system -- the highest of the 17 stocks in the Bloomberg Industries Solar LC Principal index.

By contrast, U.S. bellwether First Solar (FSLR - Get Report) garnered a lukewarm rating of 3.18, tenth on the list. The lowest-rated was German company Solarworld listed in U.S. over the counter markets under the ticker SRWRY with a market cap of just over $50 million. Its rating was just 1.29.

In listing SunEdison as a top alternative energy pick, Piper Jaffray analyst Jagadish Iyer cited "our outlook for global solar demand growth and several 2014 catalysts that should unfold over the next 12 months that we believe will provide compelling upside."

Must Read: The Deal: Regency Energy Pays Premium for PVR

He expects global solar demand to grow 15% in 2014 and 11% in 2015. He is also looking forward to SunEdison's spin-off of its semiconductor business in the first half of next year, "allowing better focus on solar pipeline execution." He cited plans in early 2014 to spin off select projects into a separate, publicly listed company as another reason for bullishness.

The planned spinoffs are indications of why SunEdison has "the best strategy to monetize the significant growth expected in solar energy while many others may experience profitless prosperity," according another SunEnergy bull, RBC Capital Markets analyst Mahesh Sanganeria.

The lone "sell" rating on SunEdison comes from Eva Dimensions, a quantitative research firm. Piper Jaffray's Iyer cites execution missteps, semi cyclicality and governmental policies and regulations as potential pitfalls for SunEdison, while other analysts cite economic weakness as the greatest threat to the stock.

SUNE Chart
SUNE data by YCharts

-- Written by Dan Freed in New York

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FSLR $58.18 2.96%
SUNE $3.49 9.40%
AAPL $117.34 -0.81%
FB $107.12 2.76%
GOOG $767.04 3.29%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs