Excess solar cell production capacity predicted
Wall Street appears to be increasingly convinced solar cell manufacturers will be saddled with too much production capacity – perhaps beginning next year.
That should be good for consumer prices as the supply of product outpaces demand, but bad for profits.
A string of research notes from investment firms have latched onto the topic. At FBR Research, analysts Mehdi Hosseini and Rafi Hassan argued Wednesday that solar cells are becoming commodities.
“In our view, with excess capacity now a concept that is well understood by the investment community,” solar company stock prices will be rethought, they said. Management effectiveness and brand-name recognition will play bigger roles than before in determining stock price, they wrote.
