Auriga Maintains a 'Hold' on Advanced Energy Industries (AEIS); Gaining Solar Share
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Price: $330.26 +0.22%
Rating Summary:
16 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Hold' on Advanced Energy Industries (NASDAQ: AEIS), PT $15.
Auriga analyst says, "We maintain our rating but increase our target on shares of Advanced Energy after a beat and raise 1Q11 report. Share gains in solar and increasing margins are the focus, with management suggesting further improvement through the year. AEIS' focus on the US solar market translates to minimal inverter price pressure, while the continuing digestion of the PV Powered acquisition provides margin tailwinds. We see the near-term sales decline in the semiconductor segment as short lived and more than made up by increasing inverter sales. If management is indeed able to increase inverter margins to a level close-to or in-line with the rest of AEIS' products, margin fluctuation around sales mix is mitigated and removes an investor overhang surrounding the increasing portion of inverter sales. We increase our 2011 and 2012 sales estimates on higher inverter sales but leave our margin assumptions unchanged until we see improvement in the Renewable segment's operating margin. Our $15 target is 8x our 2012 EPS estimate of $1.90, up from our prior $1.75."
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 $14.85 yesterday.
Auriga analyst says, "We maintain our rating but increase our target on shares of Advanced Energy after a beat and raise 1Q11 report. Share gains in solar and increasing margins are the focus, with management suggesting further improvement through the year. AEIS' focus on the US solar market translates to minimal inverter price pressure, while the continuing digestion of the PV Powered acquisition provides margin tailwinds. We see the near-term sales decline in the semiconductor segment as short lived and more than made up by increasing inverter sales. If management is indeed able to increase inverter margins to a level close-to or in-line with the rest of AEIS' products, margin fluctuation around sales mix is mitigated and removes an investor overhang surrounding the increasing portion of inverter sales. We increase our 2011 and 2012 sales estimates on higher inverter sales but leave our margin assumptions unchanged until we see improvement in the Renewable segment's operating margin. Our $15 target is 8x our 2012 EPS estimate of $1.90, up from our prior $1.75."
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 $14.85 yesterday.
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