< The 2014 All-America Research Team
Total Appearances: 5
Analyst Debut: 2009After spending a year in second place, Vishal Shah of Deutsche Bank Securities reclaims the top spot on this lineup. “His coverage is global,” proclaims one fund manager, “and he is very well-versed in the full supply chain.” Shah notes that accelerating demand and easing prices are bolstering the worldwide competitiveness of solar energy in electricity generation markets. He believes, however, that a more important development for alternative energy providers is the evolution of new sources of financing, including the use of securitization to finance U.S. solar projects and the creation of so-called yieldco vehicles to reduce the cost of capital significantly. Yieldcos are publicly listed corporations that clean energy companies form to own and operate infrastructure assets that predictably generate cash, which is distributed to investors as dividends. “This is the biggest positive change over the last 12 months, and I think that’s really what’s going to drive significant growth in the solar sector beyond any subsidies,” explains Shah, 38. “You’re able to see unsubsidized solar growth over the next couple of years.” In this context the analyst recommends buying SunEdison of St. Peters, Missouri. The provider is poised to benefit from the improved industry economics, he advises, and it gained low-cost financing via the July initial public offering of its yieldco, TerraForm Power of Beltsville, Maryland. He also favors San Jose, California–based SunPower Corp., thanks to strong U.S. demand for its integrated solar products and services. In addition, although SunPower hasn’t announced the creation of a financing vehicle, he says, “we think they have a very strong set of projects that can be dropped down into a yieldco, so the company can unlock value by spinning off assets the way SunEdison has done.” Shah “is one of the most knowledgeable analysts covering the sector,” insists another fan.