S&P Capital IQ Expects Risks to Solar Industry Fundamentals and Consensus Forecasts

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Angelo Zino of S&P Capital IQ believes fundamentals of solar industry are likely to erode through 2012.

In a research note published this morning, analyst Angelo Zino of S&P Capital IQ says that solar industry fundamentals are expected to erode through 2012 and many solar producers may witness significant downside risks to the consensus estimates. The low European demands are not recovering at the pace as expected and supply is mounting at high levels, the analyst says. This mismatch may cause prices to drop another 25-35% over the next four quarters, exerting downward pressure on the margins. The analyst believes most of the solar producers will not generate profits because cost reduction efforts will not stay in line with declining prices.