JP Morgan Calls First Solar the No. 1 Stock to Avoid Next Year
JP Morgan's (JPM) US equity strategy team led by Tom Lee just published their 2013 forecast for the stock market.
Each time they publish their outlook, they also offer their list of stocks to avoid.
Last year, their list had four stocks. This year the list consists of just one stock: First Solar (FSLR).
JP Morgan analyst Christopher Blansett has an "Underweight" rating on the beleagured solar panel stock with a $14 price target, which means the firm expects the stock price to fall by more than half.
"We see the issues currently plaguing the Solar PV industry-significant overcapacity and declining demand in Europe, which historically has been the largest market-continuing in 2013," wrote Blansett.
"Unless there is a significant increase in North American natural gas pricing, which seems unlikely given continued productivity improvements of shale-based wells, solar PV stocks are likely to remain out of favor with investors in 2013."
So, you've been warned.
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