ReneSola Downgraded to Sell

China-based ReneSola Ltd. (SOL - Analyst Report), incorporated in March 2006, is engaged in the manufacture and sale of solar wafers and related products. ReneSola's customers include global manufacturers of solar cells and modules, such as JA Solar (JASO - Analyst Report), Motech Industries, Solarfun Power (SOLF - Snapshot Report), Suntech Power (STP - Snapshot Report) and Topco Technologies.

With a predominantly bearish outlook, we downgrade SOL to a SELL recommendation. The company is dogged with tightening credit markets, rising debt levels, pressure on ASPs, rising feedstock costs, and fissures in its Chinese customer base.

Furthermore, the company divested its stake in its polysilicon joint venture with Zhongsheng Steel and is planning to postpone part of its expansion plans. In the long-run, increased captive generation of solar wafer and ingots along with falling polysilicon prices will improve its cost structure and improve earnings.

Read the full analyst report on SOL

Read the full analyst report on JASO