Kaufman Bros. Cuts Price Target & Estimates on LDK Solar (LDK), Sector Outperformer Long-Term
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Price: $1.01 --0%
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Kaufman Bros. is maintaining its Hold rating on shares of LDK Solar (NYSE: LDK) while lowering its price target by $1 to $5.
The company released its second quarter results with revenue that was at the top end of its new guidance, but was still below the consensus. The segment is facing tough times with pricing and demand both declining. The firm believes that the Feed-in Tariff uncertainties in Europe has weighed heavy in the decline in solar module demand, along with the oversupply from multiple solar companies.
Due to weaker demand industry wide and lower pricing, the firm cut its 2011 and 2012 revenue estimates from $3.4 billion and $4.4 billion to $2.7 billion and $3.8 billion. The company's current outlook calls for 2011 revenue of $2.5-$2.7 billion.
An analyst at Kaufman comments, "We continue to believe that LDK will be able to improve its cost position given its recent execution. Going forward, this should allow the company to outperform other solar companies."
The firm is also tweaking its 2011 and 2012 GAAP EPS estimates from $0.72 and $1.50 to $0.57 and $1.53.
Long-term, Kaufman believes that lower module prices should drive higher IRRs for the end customer, increase end demand, and decrease the time to reach grid parity. The firm notes that recent FiT incentives in China and stabilizing prices will allow the company's margins to increase looking ahead.
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $6.18 yesterday.
The company released its second quarter results with revenue that was at the top end of its new guidance, but was still below the consensus. The segment is facing tough times with pricing and demand both declining. The firm believes that the Feed-in Tariff uncertainties in Europe has weighed heavy in the decline in solar module demand, along with the oversupply from multiple solar companies.
Due to weaker demand industry wide and lower pricing, the firm cut its 2011 and 2012 revenue estimates from $3.4 billion and $4.4 billion to $2.7 billion and $3.8 billion. The company's current outlook calls for 2011 revenue of $2.5-$2.7 billion.
An analyst at Kaufman comments, "We continue to believe that LDK will be able to improve its cost position given its recent execution. Going forward, this should allow the company to outperform other solar companies."
The firm is also tweaking its 2011 and 2012 GAAP EPS estimates from $0.72 and $1.50 to $0.57 and $1.53.
Long-term, Kaufman believes that lower module prices should drive higher IRRs for the end customer, increase end demand, and decrease the time to reach grid parity. The firm notes that recent FiT incentives in China and stabilizing prices will allow the company's margins to increase looking ahead.
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $6.18 yesterday.
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