Auriga Maintains a 'Sell' on STR Holdings (STRI); Losing SunPower
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Price: $0.05 --0%
Rating Summary:
2 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Sell' on STR Holdings (NYSE: STRI), PT $10.
Auriga analyst says, "Our position on STR Holdings now moves to a story of market share losses rather than STRI trying to maintain its existing customer base. Specifically, we believe STR is on the verge of losing share at SunPower (SPWRA, Sell). Through our supply chain checks, we believe First EVA (private, formal name is Hangzhou First PV Material) will be a new encapsulant supplier to SunPower (Nasdaq: SPWRA)�for its high-efficiency products that are being built 1) internally, 2) through a JV with AUO (NYSE: AUO), and 3) through an outsourcing arrangement with Jabil (NYSE: JBL)(NotRated). In addition, our checks in China suggest that two European module manufacturers (using Chinese module outsourcing partners), which are current STR customers, are also aligning with First EVA as a new supplier. We are not changing our estimates at this time because we want final verification that the market share loss has occurred, and we want to more accurately predict the volume and pricing impacts to our model. Our current estimates are meaningfully below the Street in 2012, and we would expect the consensus estimate to trend toward our model as the market share loss story materializes."
For more ratings news on STR Holdings click here and for the rating history of STR Holdings click here.
Shares of STR Holdings closed at $17.17 yesterday.
Auriga analyst says, "Our position on STR Holdings now moves to a story of market share losses rather than STRI trying to maintain its existing customer base. Specifically, we believe STR is on the verge of losing share at SunPower (SPWRA, Sell). Through our supply chain checks, we believe First EVA (private, formal name is Hangzhou First PV Material) will be a new encapsulant supplier to SunPower (Nasdaq: SPWRA)�for its high-efficiency products that are being built 1) internally, 2) through a JV with AUO (NYSE: AUO), and 3) through an outsourcing arrangement with Jabil (NYSE: JBL)(NotRated). In addition, our checks in China suggest that two European module manufacturers (using Chinese module outsourcing partners), which are current STR customers, are also aligning with First EVA as a new supplier. We are not changing our estimates at this time because we want final verification that the market share loss has occurred, and we want to more accurately predict the volume and pricing impacts to our model. Our current estimates are meaningfully below the Street in 2012, and we would expect the consensus estimate to trend toward our model as the market share loss story materializes."
For more ratings news on STR Holdings click here and for the rating history of STR Holdings click here.
Shares of STR Holdings closed at $17.17 yesterday.
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