Evergreen Solar To Shut Down Devens, MA Facility

JP Morgan has published a research report on Evergreen Solar

after the company announced its latest plans for restructuring. In the report, JP Morgan writes "Yesterday after the close, Evergreen announced that it was shutting down its Devens, MA, facility by the end of C1Q11. We believe this is a positive move that represents the latest step in Evergreen's evolution in shifting its business model to one of a pureplay wafer supplier. Additionally, the company released selected preliminary results for its C4Q10 that were modestly lower than our currently modeled estimates. We had long argued that Evergreen had little likelihood of succeeding longer term as an integrated wafer-cell manufacturer given its scale and cost disadvantage vs. mainstream c-Si peers. This was especially true given its main fab was located in the U.S. and its inherent cost advantage in wafer processing was being diluted by its high-cost downstream operations." JP Morgan maintains its Neutral rating on Evergreen Solar, which closed yesterday at $3.15.