STOCKS NEWS EUROPE-SMA gains as UBS upgrades

Shares in SMA Solar Tech (S92G.DE) gain 2.5 percent, while those of peer Solarworld (SWVG.DE) drop 1.6 as UBS upgrades its stance on SMA to "buy" with a 63 euro price target and downgrades its stance on Solarworld to "sell," pegging its price target at 15.5 euros per share. "The rating on Solarworld is definitely running against the general market consensus," says a Frankfurt-based trader.

Currently nine out of 33 analysts rate Solarworld with a "strong buy" as opposed to only two analysts who rate it with a strong sell rating, according to data from StarMine.

"SolarWorld's gross margin should be lower than expected on average selling price (ASP) pressure," UBS analysts write in a note to clients.

SMA, on the other hand, should see little ASP pressure and should benefit from its leading position as a inverter supplier in all markets except for Japan, the brokerage says.

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