Maxim Group Starts STR Holdings (STRI) at Buy, Sees Opportunity Where Others May Fall
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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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Maxim Group initiates coverage on shares of STR Holdings (NYSE: STRI) with a Buy rating and $22 price target.
The firm believes that the new paradigm of $1/W will open up STRI’s addressable market and drive growth of 14 percent in EPS and 10 percent in free cash flow between 2010 and 2014.
With module ASPs of $1.25 in 2012, Maxim forecasts global demand growing by 23 percent to 23 GW in 2012 and ultimately 38 GW in 2014.
The company converted 80 percent of its net income into $40 million in free cash flow in 2010.
An analyst at Maxim comments, " While low-cost Chinese producers are gaining share, we see the bankability offered by STRI’s 30-yr. track record and the lower costs it brings to the production process as competitive advantages which will not only help it retain but grow share. We expect new contracts to further drive volume growth. Market share gains of its customers also drive volume growth even without contract wins."
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 $16.52 yesterday.
The firm believes that the new paradigm of $1/W will open up STRI’s addressable market and drive growth of 14 percent in EPS and 10 percent in free cash flow between 2010 and 2014.
With module ASPs of $1.25 in 2012, Maxim forecasts global demand growing by 23 percent to 23 GW in 2012 and ultimately 38 GW in 2014.
The company converted 80 percent of its net income into $40 million in free cash flow in 2010.
An analyst at Maxim comments, " While low-cost Chinese producers are gaining share, we see the bankability offered by STRI’s 30-yr. track record and the lower costs it brings to the production process as competitive advantages which will not only help it retain but grow share. We expect new contracts to further drive volume growth. Market share gains of its customers also drive volume growth even without contract wins."
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 $16.52 yesterday.
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