Piper Jaffray Downgrades GT Solar (SOLR), Lowers Price Target

10 November of 2009 by

Piper Jaffray is downgrading GT Solar (SOLR) to Underweight and slashing the price target to $3 following the earnings report.

Hat tip to StreetInsider.com for the following comment:

“While we believe SOLR’s DSS furnace business is well positioned fora coming expansion cycle and possibly a replacement cycle as thecompany launches its 600KG furnace next year, we have major concerns onSOLR’s polysilicon equipment (CVD) backlog that bring us to downgradethe stock…We believe that the company’s backlog for polysilicon reactorequipment (75% of its backlog) is at risk due to a rapidlydeteriorating financial condition at its polysilicon equipmentcustomers in China with little hope of an expansion cycle near term asthe Chinese government clamps down on new poly entrants in an effort torationalize capacity. We speculate that many poly start-ups in Chinacould shut down and it will be difficult for SOLR to get new bookingsor realize its contracted backlog…We downgrade SOLR to UW on polybacklog risk and lower PT to $3 (12x FY11 EPS of $0.26) from $7 (12xFY11 EPS of $0.56). We believe a multiple of 12x is justified owing topoly backlog risk and mgmt uncertainty partially offset by GT Solar’stechnology leadership and strong balance sheet.”

Piper Jaffray Downgrades GT Solar (SOLR), Lowers Price Target

JA Solar releases financial results for the first quarter of 2009 295x2203 150x150 JA Solar Crushes Estimates (JASO)

Previous:

JA Solar Crushes Estimates (JASO)

Suntech (STP) Begins Building 50MW Solar Power Plant In Jiangsu

Next:

Suntech (STP) Begins Building 50MW Solar Power Plant In Jiangsu

You may also like

Post a new comment