Exchange traded funds that invest in solar energy stocks benefitted from a more than 10% rally in GT Solar (NasdaqGS: SOLR) shares Tuesday after the company reported solid quarterly results.
GT Solar’s fiscal fourth-quarter profit beat Wall Street estimates. However, solar ETFs have fallen sharply over the past month.
“The company also guided higher for both revenue and earnings in fiscal 2012,” said analysts at Wunderlich Securities in a note Tuesday on GT Solar earnings. “The company is benefiting from the successful introduction of a new product line of equipment that puts it squarely into the blue LED segment, which is the key component required to make white light. The LED business is driving upside to 2012.”
Wunderlich, which has a buy rating on GT Solar, said it agrees with recent news reports suggesting the company could be an acquisition target. “It is exceptionally profitable and has a large and growing backlog,” the analysts said.
GT Solar is a component in Market Vectors Solar Energy ETF (NYSEArca: KWT), Guggenheim Solar ETF (NYSEArca: TAN), iShares S&P Global Clean Energy (NasdaqGM: ICLN) and PowerShares WilderHill Clean Energy (NYSEArca: PBW).
Guggenheim Solar ETF
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