Deutsche Bank Likes SunEdison, First Solar And Others Because Of These Catalysts

Deutsche Bank analyst Vishal Shah said SolarCity Corp SCTY's monetization efforts of existing assets and other company specific events will act as catalysts for solar stocks.

Meanwhile, the audit committee investigation should be the near-term catalyst for Sunedison Inc SUNE, while First Solar, Inc. FSLR shares are expected to react positively ahead of its Analyst day.

"We expect Canadian Solar Inc. CSIQ and Sunrun Inc RUN earnings calls later this week to generally act as positive catalysts," Shah wrote in a note to clients.

Related Link: Why SunEdison's Spike Isn't Justified

Both Canadian Solar and Sunrun are expected to report their quarterly numbers on March 10. Analysts, on average, expect Canadian Solar to earn 76 cents a share on revenue of $1.04 billion, while Sunrun is expected to report a loss of 64 cents a share on revenue of $103.93 million for the fourth quarter.

Although Canadian Solar has positively pre-announced, the analyst expects 2016 outlook to be generally strong. For Sunrun, Shah expects results/outlook to buck normal seasonality trend as he sees fundamentals to generally outperform SolarCity fundamentals.

Shares of SolarCity were up 2.4 percent, First Solar 1.5 percent and Canadian Solar 0.6 percent, while SunEdison fell 2.5 percent.