Evergreen Solar slips on Industry Issues
Shares of Evergreen Solar (NASDAQ: ESLR) have slipped by more than 8% so far after gaining 9% a day before. ESLR has been downgraded by Citi from “hold” to “sell.” Citi has also reduced its target price for ESLR by $2 to $1. Similarly, Pacific Crest has downgraded ESLR from “sector outperform” to “sector perform.”
The fall in Evergreen Solar’s shares and downgrades were reactions to the trends merging in the solar market. Although the solar sector has to a great extent come out of the economic uncertainty and credit issues it faced until recently, it is now getting pressurized by the supply glut of solar products it has been producing for years. This supply issue has forced several manufacturers to slash product prices, resulting in a 30% decline in solar panel prices over the past year.
Compelled by the need to lower costs, Evergreen Solar announced its decision to shift its assembly plant for solar panel to China.
