Rob Stone Maintains OUTPERFORM Rating on Suntech (NYSE:STP)

Filed in euro, Gold Prices, Guidance, silver by on May 11, 2010 0 Comments

March 11, 2010 – Analyst Comments – Cowen’s Rob Stone reiterated an OUTPERFORM rating on Suntech (NYSE:STP) this morning, noting that “as long as Euro zone PV project credit continues to function, supporting volume growth, historical P/Book and EV/Sales rations suggest EPS risk largely priced into the stock. Preliminary Q110 Results Suntech expects Q110 revenues in range of $580 to $590 million, with gross margin of 19% to 20% (previous guidance of 18% to 20%). Expects foreign exchange loss of about $24 to $25 million due to weakness in the Euro vs. the dollar. Key Takeaways Estimates shipments rose about 17% Q/Q on roughly 15% Q/Q ASP decline Estimates Q2 EPS may come in 10% to 20% below street Thinks ASP pressure to be greater for European players “More normalized floor (for the stock) appears to be about 1.5x price/book and 1.6x EV/sales”….risk/reward still looks favorable.

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Rob Stone Maintains OUTPERFORM Rating on Suntech (NYSE:STP)

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