Solarworld Rises on Report Sharp to End Sales: Frankfurt Mover
Solarworld AG (SWV), Germany’s biggest maker of solar panels, rose to the highest level in four months after a report that Sharp Corp. plans to trim production of solar equipment in the U.S. and Europe.
Solarworld rose for a fourth day, jumping as much as 12 percent to 1.67 euros today, the highest intraday price since May 18. The stock traded at 1.60 euros at 12.43 p.m. in Frankfurt, up 7.6 percent. Shares have fallen 51 percent this year, valuing the Bonn-based company at 180.9 million euros ($233 million).
“It’d be a positive if some desperate players left the market, but real consolidation would require also the exit of some Chinese manufacturers,” Heinz Steffen, an analyst at Fairesearch, said by telephone. He recommends clients to buy the shares and expects the stock to rise to 1.90 euros within six months.
Sharp plans to end production and sales of solar cells and modules in the U.S. and Europe by March as part of a restructuring, Kyodo News reported today, without saying where it got the information. Sharp wasn’t the source of the report and nothing has been decided, Miyuki Nakayama, a company spokeswoman, said by phone.
Solarworld shares rose 10 percent yesterday, after EU ProSun, an industry group led by the German company, filed an anti-subsidy complaint with the European Commission in Brussels, stepping up demands for tariffs and accusing Chinese exporters of receiving illegal subsidies.
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