Collins Stewart Downgrades China Sunergy (CSUN) to Neutral; Cost Reduction Falters
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Price: $0.45 --0%
Rating Summary:
0 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 1 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Collins Stewart downgraded China Sunergy (NASDAQ: CSUN) to Neutral with a price target of $1.60.
Collins analyst says, "Our revised forecast assumes CSUN is able to ship 710MW at an ASP of $1.11/w in CY12. If this is achieved, its gross margin will recover to 12.3% for the year and the company will achieve our $0.39 EPS forecast, which is down from our prior outlook for $0.60. Risks to this forecast include an assumption that it can reduce its module processing cost to $0.49 and have access to wafers at $0.46/w during the year. Due to capacity expansion spending over the next year, we forecast CSUN's net cash to deteriorate to negative $335M by 3Q12, down from the negative $138M in 2Q11."
For more ratings news on China Sunergy click here and for the rating history of China Sunergy click here.
Shares of China Sunergy closed at $1.23 yesterday.
Collins analyst says, "Our revised forecast assumes CSUN is able to ship 710MW at an ASP of $1.11/w in CY12. If this is achieved, its gross margin will recover to 12.3% for the year and the company will achieve our $0.39 EPS forecast, which is down from our prior outlook for $0.60. Risks to this forecast include an assumption that it can reduce its module processing cost to $0.49 and have access to wafers at $0.46/w during the year. Due to capacity expansion spending over the next year, we forecast CSUN's net cash to deteriorate to negative $335M by 3Q12, down from the negative $138M in 2Q11."
For more ratings news on China Sunergy click here and for the rating history of China Sunergy click here.
Shares of China Sunergy closed at $1.23 yesterday.
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