(SOL) ReneSola Limited – ADS – Bear of the Day

ReneSola Ltd.’s (SOL) significant presence in the solar module original equipment manufacturing (OEM) market is currently slated to underperform, owing to Europe’s challenging financing environment. The near-term valuation of the company will be adversely impacted by tepid solar products demand in Europe (especially Germany).

Rising competition, credit risk from its customers, oversupply glut of solar wafer and modules in the market, and the company’s high R&D expenses are our reasons behind this view. Given the industry-wide high inventory level, we believe performance is only going to be downhill going forward.

We advise investors to exit from the stock for now and look for a favorable entry point in the future. We are apprehensive over any near-term margin recovery for the company given the industry trend of cascading average selling prices.

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

To read this article on Zacks.com click here.

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Semiconductor - Integrated Circuits | Technology

RSS feeds: ReneSola Limited | SOL | Semiconductor - Integrated Circuits | Technology |

Other Posts by | RSS Feed for this author