March 9, 2009 ndash; Analyst Comments ndash; Cowen amp; Companyrsquo;s Rob Stone reported back this morning after talking with several solar companies at last weekrsquo;s Photon Conference stating that visibility will continue to be poor for the sector and it will be difficult to determine how deep the impact of the financial crisis will be on solar stocks, until April. He cut estimates for Evergreen Solar (Nasdaq:ESLR), SunPower (Nasdaq:SPWRA), Suntech (NYSE:STP) and Trina Solar (NYSE:TSL) ldquo;to reflect lower ASPs.rdquo; His recommendation is to focus on solar companies which are most immediately staged to benefit from US stimulus and the emerging utility segment. In this group, he thinks First Solar (Nasdaq:FSLR), SunPower and Energy Conversion Devices (Nasdaq:ENER) are best situated.

Here are key takeaways from Stones comments this morning:

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; A seasonal Q1 in Germany looks weak
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Module prices are in the range of euro;2.00-2.50
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Spot poly is holding at about $135-150/kg, but prices may fall as more capacity comes online
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Expects wafer prices to fall faster than module ASPs because silicon prices are coming down faster than cell and module conversion costs

Evergreen Solar

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Despite trading at about 0.3x book value, shares are being depressed by concerns about capital requirements and execution risks
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Cutting 2009/10E revenue to $327.1M and $485M; cutting EPS to ($0.18) and $0.19). ASP expected at $3.00 and $2.70. Cutting shipment to 105MW and 173MW. GM expected at 22.3% and 27.9%.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintain NEUTRAL rating.

SunPower

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Believes SPWRA is well positioned when credit conditions improve with premium product, strong channels and 1GW+ pipeline of utility projects.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Cutting 2009/10E revenue to $1.625B and $2.380B; cutting EPS to $2.14 and $2.99. ASP expected at $3.28 and $2.99. Assuming GM at 26.9% and 26.1%.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintain OUTPERFORM rating.

Suntech

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; At less than 1x book value believes stock is attractive on 12-month basis.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Cutting 2009/10E revenue to $1.84B and $2.33B; cutting EPS to $0.44 and $0.90. ASP expected at $2.80 and $2.47. Assuming GM of 16.3% and 18.9%.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintain OUTPERFORM rating.

Trina Solar

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Trading under 0.5x book value, stock is attractive on a 12-month horizon
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Cutting 2009/10E revenue to $755M and $1.035B; cutting E/ADS to $1.15 and $2.42. ASP expected at $2.70 and $2.40. Assuming GM of 17.5% and 19%.
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintain OUTPERFORM rating

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