Auriga Maintains a 'Hold' on Suntech Power (STP); Updating Estimates and Price Target
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Price: $0.53 --0%
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 5
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 5
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Auriga maintains a 'Hold' on Suntech Power (NYSE: STP) price target raised to $3.50.
Auriga analyst said, "Suntech Power raises (2/17/12) 4Q11 shipment estimates, GM guidance intact. 4Q11 Shipments: Suntech Power updated its 4Q11 module shipments guidance on 2/17/12 to ~512MWp compared to ~455MWp previously. 4Q11 Goss Margins: Gross margin guidance was unchanged at 9% to 11% - this implies company module ASP for 4Q11 at > $1.15/Wp with improved cost structure (driven by non-silicon cost) at ~$1.04/Wp. ASP/Wp tracks in-line with guidance and compares favorably vs. $0.80/Wp to $0.90/Wp liquidation pricing reported for December 2011. Asset Write-offs: Suntech Power completed its assessment for asset impairments of ~$571M to goodwill, intangibles, investments and other L-T assets that will be assigned to 3Q11. The non-cash write-offs include $407M in impairments of goodwill/intangible assets; $109M in impairments of investments/pre-payments to, Nitol Solar and Shunda; and a $55M write-down of equipment and facilities. We have previously noted that investors should expect positive/negative surprises for 4Q11 solar PV company results depending on ASP/volume dynamic, and also brace for more asset/inventory write-offs."
For an analyst ratings summary and ratings history on Suntech Power click here. For more ratings news on Suntech Power click here.
Shares of Suntech Power closed at $3.69 yesterday.
Auriga analyst said, "Suntech Power raises (2/17/12) 4Q11 shipment estimates, GM guidance intact. 4Q11 Shipments: Suntech Power updated its 4Q11 module shipments guidance on 2/17/12 to ~512MWp compared to ~455MWp previously. 4Q11 Goss Margins: Gross margin guidance was unchanged at 9% to 11% - this implies company module ASP for 4Q11 at > $1.15/Wp with improved cost structure (driven by non-silicon cost) at ~$1.04/Wp. ASP/Wp tracks in-line with guidance and compares favorably vs. $0.80/Wp to $0.90/Wp liquidation pricing reported for December 2011. Asset Write-offs: Suntech Power completed its assessment for asset impairments of ~$571M to goodwill, intangibles, investments and other L-T assets that will be assigned to 3Q11. The non-cash write-offs include $407M in impairments of goodwill/intangible assets; $109M in impairments of investments/pre-payments to, Nitol Solar and Shunda; and a $55M write-down of equipment and facilities. We have previously noted that investors should expect positive/negative surprises for 4Q11 solar PV company results depending on ASP/volume dynamic, and also brace for more asset/inventory write-offs."
For an analyst ratings summary and ratings history on Suntech Power click here. For more ratings news on Suntech Power click here.
Shares of Suntech Power closed at $3.69 yesterday.
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