Suntech Power Shares Jumped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Suntech Power (NYS: STP) have jumped by as much as 16% today. A couple of solar sector analysts have recently made bullish comments, resulting in a sector-wide rally.

So what: Axiom Capital analyst Gordon Johnson, who had previously predicted "armageddon" for the sector over a year ago, has said that the industry's darkest days may finally be over. Maxim Group analyst Aaron Chew also said he was "pretty bullish on demand in 2012."

Now what: Johnson has upgraded a handful of solar players from sell to neutral, including Suntech Power, as installations in Europe soared near the tail end of last year. The rise in installations helped clear out the inventory glut within the sector, and China also plans on doubling its solar energy use this year and consolidate solar-panel makers. Last month, German installations reached 3 gigawatts, a new single-month record.

Interested in more info on Suntech Power? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners