Nothing but blue skies for shares of many solar products makers, as a Citi Investment Research analyst said prospects look good for continuation of government solar tax credits.
Analyst Timothy M. Arcuri said in a client note that his “contacts indicate the House Ways and Means Committee is likely to propose a new bill that will extend most of the credits for at least several years — longer than the one-year extension that has been discussed to date. The House is hoping to pass a bill before the Memorial Day recess.”
Even if a bill appears this week, it must still be voted on by the full House and sent to the Senate, where there is no guarantee it would pass without meaningful revision, the analyst wrote.
Canadian Solar Inc. shares took off after first-quarter earnings beat Wall Street estimates. The stock hit a new high of $45.08 before settling at $40.78, up $6.68, or 19.6 percent, for the day.
Energy Conversion Devices Inc. rose $3.58, or 6.9 percent, to $55.20; SunPower Corp. added $4.60, or 5.5 percent, to $89; and First Solar Inc. rose $19.14, or 6.7 percent, to $303.98.