Maxim Group Maintains a 'Sell' on Suntech Power (STP); Despite Strong Shipment Outlook, Losses and Debt Continue Growing May 24, 2012 09:31AM

Maxim Group maintains a 'Sell' on Suntech Power (NYSE: STP) price target cut from $1.50 to $0.50.

Analyst, Aaron Chew, said, "Following steep 1Q downside punctuated by $45m in provisions, STP foresees a 20% Q/Q rebound in shipments but gross margins stuck at ~5% in 2Q. With no end in sight for EPS and free cash flow losses, we foresee material risk to equity deflation and/or dilution and lower our price target."

"Though making tremendous strides at lowering its production costs, STP faces a huge challenge keeping up with its low-cost peers and steady ASP pressures. While it targets module costs of <$0.75/W by 2012YE ($0.60/W processing and ~$27/kg poly), this is 10% higher than the $0.60/W forecast of Trina Solar (NYSE: TSL)(Hold) and essentially in line with our 4Q12 module ASP forecast of $0.78/W, suggesting no end in sight for steep net losses and cash burn."

For an analyst ratings summary and ratings history on Suntech Power click here. For more ratings news on Suntech Power click here.

Shares of Suntech Power closed at $2.02 yesterday, with a 52 week range of $1.70-$8.50.


Nomura Securities Maintains a 'Buy' on Melco Crown Entertainment (MPEL); Raising PT and Estimates May 24, 2012 09:09AM

Nomura Securities maintains a 'Buy' on Melco Crown Entertainment (NASDAQ: MPEL) price target raised to $17.50.

Analyst, Charlene Liu, said, "Post 1Q12 results and a recent company visit, we lift our estimates and target price. We are encouraged by 1) potential margin improvement from MPEL’s continual business mix shift toward mass and non-gaming (>60% of group’s EBITDA in non-VIP); 2) potential earnings upside from its new premium mass facilities and its overall mass business at the City of Dreams, which could benefit from traffic from the new Sands Cotai Central; and 3) stabilizing VIP volume growth from continuous efforts to improve yield through replacing less-efficient junkets. F12E/F13E EPS moves from $12.75/$18.46 to $17.96/$19.43."

For an analyst ratings summary and ratings history on Melco Crown Enter. click here. For more ratings news on Melco Crown Enter. click here.

Shares of Melco Crown Enter. closed at $12.07 yesterday, with a 52 week range of $7.05-$16.15.


Nomura Securities Maintains a 'Buy' on Dollar General (DG); Q1 Preview - Redbox (CSTR) Is Coming May 24, 2012 09:07AM

Nomura Securities maintains a 'Buy' on Dollar General (NYSE: DG) price target of $54.00.

Analyst, Aram Rubinson, said, "DG is likely to report earnings the week of June 4. Our $0.63 EPS estimate is $0.03 ahead of the Street and presumes a 5.5% comp. DG has been leading the way in testing new ways to drive traffic. In addition to layering in key consumables like beer/wine and experimenting with fresh and expanded frozen product in its DG markets, we believe DG is likely to roll out Redbox (Nasdaq: CSTR) rental kiosks at DG stores. Although this test is early, we estimate Redbox could drive in an incremental 1.8% more customers through a typical store."

For an analyst ratings summary and ratings history on Dollar General click here. For more ratings news on Dollar General click here.

Shares of Dollar General closed at $46.90 yesterday, with a 52 week range of $29.84-$48.76.


Nomura Securities Maintains a 'Neutral' on Alcatel-Lucent (ALU); Speedy New 7950 XRS Core Router May 24, 2012 09:04AM

Nomura Securities maintains a 'Neutral' on Alcatel-Lucent (NYSE: ALU) price target of $1.27.

Analyst, Stuart Jeffrey, said, "New 7950 XRS core router beats rivals solutions on speed, density and feature sets. Relative to prior expectations, the product is set to launch slightly earlier than we had thought and boasts greater density levels. We believe that this positions Alcatel-Lucent well to gain between a 10% and 20% share of the core router market by end-2014. We have modestly raised our 2013/14 revenue estimates by 0.4%/1.1%, while 2014 recurring EPS is increased to EUR 0.09 from EUR 0.08. ALU’s rating remains Neutral on liquidity concerns, Cisco (Nasdaq: CSCO) remains Buy rated given low multiples and core share gains are already in estimates, Juniper (Nasdaq: JNPR) remains Neutral with a negative bias given headwinds to long-term growth."

For an analyst ratings summary and ratings history on Alcatel-Lucent click here. For more ratings news on Alcatel-Lucent click here.

Shares of Alcatel-Lucent closed at $1.57 yesterday, with a 52 week range of $1.39-$6.05.


Nomura Securities Reiterates a 'Buy' on American Eagle Outfitters (AEO); Adjusting Estimates After Q1 Review May 24, 2012 08:53AM

Nomura Securities reiterates a 'Buy' on American Eagle Outfitters (NYSE: AEO) price target of $24.00.

Analyst, Paul Lejuez, said, "Following AEO’s sector leading +17% comp in 1Q, the company is guiding to +mid single digit comps in 2Q, well above trends at primary teen competitors. We believe AEO’s fashion is on target and the company is taking share and driving the top line while pulling back on promotions. We expect leaner inventories in 2H to drive significant GM increases and believe the company will be well positioned with down high single-digit unit buys while teen competitors seem ready to buy units up. F12E/F13E EPS from $1.28/$1.49 to $1.44/$1.66 (reflecting $0.10 from 77kids closure). Trading at 5.5x F12E EBTDA, valuation is attractive."

For an analyst ratings summary and ratings history on American Eagle Outfitters click here. For more ratings news on American Eagle Outfitters click here.

Shares of American Eagle Outfitters closed at $20.04 yesterday, with a 52 week range of $10.00-$21.13.


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