Evergreen Solar a Long-Term Buy

Tags: eslr
13 Jan 10:29pm
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The growth potential of the solar industry as a whole and Evergreen Solar (ESLR) in particular -- with a $3 billion and 1GW contractual backlog -- remains a compelling story.

Positive factors include the significant new multi-year sales contracts, ongoing expansion programs over the next few years, improving operating efficiencies, technological upgrades, and planned new string factory.

However, charges on account of closure of Marlboro Pilot Plant, continuing earnings losses due to high start-up costs, significant capital expenditures and earnings dilutive stock issuances may present risks to near-term share price upside potential.

Nevertheless, we maintain our speculative BUY recommendation on ESLR with a six-month target price of $4.00, representing 25% upside potential.

Read the full analyst report on ESLR




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