Deutsche Bank Starts ReneSola Ltd. (SOL) at Hold, Estimates an Earning Loss for 2012
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Price: $1.94 --0%
Rating Summary:
6 Buy, 3 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 3 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiates coverage on shares of ReneSola Ltd. (NYSE: SOL) with a Hold rating and $3 price target.
Even with share only trading at 0.6x replacement value, the firm notes that there is no near-term upside until demand improves, wafer prices stabilize, and the company's internal poly plant achieves the target cost structure.
The firm does like what SOL is doing with cutting costs on its wafer segment and feel that a $0.20/W processing cost target is plausible.
The firm is estimating a earnings loss of $0.03 for 2012, significantly below the consensus of a $0.42 gain, as revenues are expected to decline by 14 percent. Gross margin is forecasted to decline by 271 bps on shipments of 1,760MW.
An analyst at Deutsche comments, "We also believe wafer prices would decline less steeply than poly prices going forward. However, we initiate with a Hold due to the company’s weak long-term prospects in the module market which is set to grow faster than the wafer market, and the overall weak market outlook for the wafer industry."
For more ratings news on ReneSola Ltd. click here and for the rating history of ReneSola Ltd. click here.
Shares of ReneSola Ltd. closed at $2.96 yesterday.
Even with share only trading at 0.6x replacement value, the firm notes that there is no near-term upside until demand improves, wafer prices stabilize, and the company's internal poly plant achieves the target cost structure.
The firm does like what SOL is doing with cutting costs on its wafer segment and feel that a $0.20/W processing cost target is plausible.
The firm is estimating a earnings loss of $0.03 for 2012, significantly below the consensus of a $0.42 gain, as revenues are expected to decline by 14 percent. Gross margin is forecasted to decline by 271 bps on shipments of 1,760MW.
An analyst at Deutsche comments, "We also believe wafer prices would decline less steeply than poly prices going forward. However, we initiate with a Hold due to the company’s weak long-term prospects in the module market which is set to grow faster than the wafer market, and the overall weak market outlook for the wafer industry."
For more ratings news on ReneSola Ltd. click here and for the rating history of ReneSola Ltd. click here.
Shares of ReneSola Ltd. closed at $2.96 yesterday.
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