Piper Jaffray Comments on Solar & Manufacturing Technologies Stocks. Raises PT's on YGE, TSL, CSIQ and JASO

December 23, 2009 7:00 AM EST

Piper Jaffray comments on Solar & Manufacturing Technologies Stocks. Raises estimates and PTs given 2010 Pull-ins from major markets.

Piper analyst says, "Based on our channel checks and recent tour through China we raise estimates and price targets for Yingli Green Energy (NYSE: YGE), Trina Solar (NYSE: TSL), and Canadian Solar (Nasdaq: CSIQ) noting our estimate increases for JA Solar (Nasdaq: JASO) last week. These four Chinese suppliers continue to win global share of a WW market poised for significant unit growth in 2010. More stable ASPs in 2010 and lower polysilicon costs are allowing sequential margin increases for the group to q2-q3.
We believe 30% gross margin is within reach. Currency may become less of a tailwind in 2010...We expect solid 2010 demand driven by pull-ins ahead of subsidy reductions in major European markets - Germany (mid 2010 reduction), Italy (YE2010), and Czech Republic...Leading Chinese OEMs use German equipment, German and European consumables, and German polysilicon; German installers are likely using German inverters. Overseas expansions of STP, YGE, and CSIQ into North America should also serve to quell protectionism from NA politicians."

YGE's price target increased from $17 to $19, JASO from $6 to $7, CSIQ from $25 to $35 and TSL from $53 to $65.