Friday, June 4, 2010

Auriga's Bachman and Cowen's Stone Comment on Suntech- Both Maintain Cautious Outlooks (STP)

A quick hit from SmallCapPulse:

Analyst Comments – Auriga’s Mark Bachman and Cowen’s Rob Stone both weighed in on Suntech (NYSE:STP) this morning, post Q110 financial report, rating STP at HOLD and OUTPERFORM, respectively.
Bachman’s Key Takeaways:
·         $11 price target for stock is 1x FY11 book/share estimate of $10.67
·         Pluto technology suffered another setback (current production of Pluto modules limited to 4MW per month), calling into question STP’s ability to enable 450MW of Pluto production while still achieving new 1.3GW shipment guidance
·         Expecting continued GM pressure throughout 2010, dipping to the 15% level in 2011