Massachusetts-based Evergreen Solar Inc. (ESLR) introduced new panels with its newly developed BOOST Cell Technology focused on the French Market at Salon des Energies Renouvelables in Paris.
 
The new series of panels for residential and commercial markets feature Evergreen’s new Boost Cell Technology that uses micro wires instead of conventional bus-bars to reduce cell shading, improve current collection and ultimately increase the overall panel efficiency.
 
This innovative new cell technology gives Evergreen Solar’s panels a superior and aesthetic position in the French building integrated market where aesthetics are of primary concern. The new panels will be available commercially from the fourth quarter of 2010.
 
Evergreen Solar’s geographically diversified contractual backlog, ongoing expansion programs and shifting a part of its manufacturing process to China, improving operating efficiencies and upgradation in technology will help maintain its positive momentum. We expect Evergreen Solar to narrow its losses in fiscal 2010 with a loss per share of 33 cents compared to a loss of 53 cents in fiscal 2009.
 
However, continuing near-term losses due to start-up costs, capital expenditures, apprehension over a subsidy roll-back in Germany and earnings dilutive stock issuances may stunt the near-term share price upside potential.
 
Competition in the industry is becoming tougher by the day for U.S. solar players such as Evergreen Solar, who have a huge German bias in their top line compared with its counterparts such as, Suntech Power Holdings Company Ltd. (STP), SunPower Corporation (SPWRA) and ReneSola Ltd. (SOL) whose markets are more diversified.
 
We maintain our long-term Neutral recommendation on the Zacks #3 Rank (‘Hold’) stock.
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