Deutsche Bank Starts Suntech Power (STP) at Hold; First Mover Dis-Advantage
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Price: $0.53 --0%
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiates coverage on Suntech Power (NYSE: STP) with a Hold. PT $5.00.
Deutsche analyst says, "Although the European market could still represent a large majority of Suntech’s geographic exposure, we expect market share gains in other international markets such as North America, Thailand, Australia, Israel as well as China to mitigate some of the risk in 2012. That being said, Suntech has a first mover disadvantage, in our view, as the company made several large investments in poly/thin film start-ups during the subsidy driven growth phase, significantly increased operating base in order to increase brand awareness/gain market share and along with this process, the associated debt burden. Shares are now trading at a discount to peers on book valuation, ASPs are no longer at a premium, and the cost story appears generally improving. That said, improved execution and stronger balance sheet would be required to bring on additional investor interest, in our view." (Deutsche Bank 2012 EPS estimate is $0.03 vs. consensus of $0.44)
For more ratings news on Suntech Power click here and for the rating history of Suntech Power click here.
Shares of Suntech Power closed at $3.77 yesterday.
Deutsche analyst says, "Although the European market could still represent a large majority of Suntech’s geographic exposure, we expect market share gains in other international markets such as North America, Thailand, Australia, Israel as well as China to mitigate some of the risk in 2012. That being said, Suntech has a first mover disadvantage, in our view, as the company made several large investments in poly/thin film start-ups during the subsidy driven growth phase, significantly increased operating base in order to increase brand awareness/gain market share and along with this process, the associated debt burden. Shares are now trading at a discount to peers on book valuation, ASPs are no longer at a premium, and the cost story appears generally improving. That said, improved execution and stronger balance sheet would be required to bring on additional investor interest, in our view." (Deutsche Bank 2012 EPS estimate is $0.03 vs. consensus of $0.44)
For more ratings news on Suntech Power click here and for the rating history of Suntech Power click here.
Shares of Suntech Power closed at $3.77 yesterday.
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