Barclays Maintains an 'Overweight' on Advanced Energy Industries (AEIS); Near-Term Headwinds from Inverter and Semi Cap Segments

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AEIS Hot Sheet

Rating Summary:
3 Buy, 6 Hold, 1 Sell

Rating Trend:

Up

Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82

Barclays maintains an 'Overweight' on Advanced Energy Industries (NASDAQ: AEIS), PT lowered from $19 to $17.

Barclays analyst says, "While order push-outs in AEIS's solar inverter segment drove the negative pre-announcement (with shares down 12% today vs. SOX -1%), we see headwinds continuing into 3Q driven by more muted trends in the semi equipment segment and the resultant drag on gross margins. However, as we had been expecting outlook revisions across most subsystem names, street expectations already factoring in a weaker SPE environment (given recent pre-announcements from BRKS and MKSI), and with no changes so far to the Arizona/California inverter projects, we see 3Q11 marking the earnings trough, with valuation at 1.5x book and 9x our CY11 EPS providing support for shares."

"Assuming a modest uptick in inverter sales in 3Q driven by initial sales to AZ/CA, and flattish SPE, we now model 3Q revenues/EPS at $130M/$0.28 (consensus $157M/$0.42). Our CY11 estimates move to $551M/$1.40 (street $605M/$1.69), with CY12 lowered to $600M/$1.55 (street $640M/$1.76)."

For more ratings news on Advanced Energy Industries click here and for the rating history of Advanced Energy Industries click here.

Shares of Advanced Energy Industries closed at $13.27 yesterday, with a 52 week range of $11.40-$18.53.

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