Susquehanna notes that the solar sector is going face extreme challenges in 2011, and consider First Solar (NASDAQ:FSLR) as the best positioned of all solar firms to face the weak market, especially in the first half of 2011.
One positive for First Solar is they "recently received all regulatory approvals, with the local grid company planning to purchase the project upon the completion. What is note worthy is that FSLR's project received a FIT of RMB 1.09/kwhr vs. other projects that were given less than RMB 0.90/kwhr of FIT."
Concerning module ASPs, Susquehanna noted "si-based module ASPs quoted for 1H11 delivery are already tracking close to $1.50/w. With minimum difference of $0.20/w required b/w FSLR and si-based module ASPs, there could be some downside risk to our conservative (FSLR) module ASPs."
First Solar claims they're going to exceed analysts' EPS and revenue estimates in 2011, with sales reaching about $3.7 to $3.9 billion.
EPS estimates by First Solar are from a range of $8.75 and $9.50 in 2011, above $8.61 analysts are looking for. Susquehanna sees revenue of $3.56 billion, and EPS of $8.47 a share.
First Solar closed Tuesday at $137.04, up $0.24, or 0.18 percent.
Showing posts with label Solar Sector. Show all posts
Showing posts with label Solar Sector. Show all posts
Wednesday, December 15, 2010
Thursday, December 2, 2010
Actuant’s (NYSE:ATU) Acquisition of Mastervolt Good Strategic Fit
Citing the recent $150 million acquisition of Mastervolt as a strategic good fit, FBR Capital says they're maintaining their "Outperform/Top Pick" rating on Actuant (NYSE:ATU).
"We view Actuant’s $150 million acquisition of Mastervolt, a European producer of electric inverters for photovoltaic and marine applications, as a good strategic fit adding exposure to secular growth trends in solar, and a positive for shares...We continue to like Actuant’s positioning in mid-to-late-cycle markets and see upside to estimates as beaten-down businesses in truck, auto, RV, and Energy recover," said FBR.
Actuant closed up Wednesday at $24.45, gaining $0.82, or 3.47 percent. FBR has a price target of $26 on them.
Trading volume was almost three times the daily 3-month average.
"We view Actuant’s $150 million acquisition of Mastervolt, a European producer of electric inverters for photovoltaic and marine applications, as a good strategic fit adding exposure to secular growth trends in solar, and a positive for shares...We continue to like Actuant’s positioning in mid-to-late-cycle markets and see upside to estimates as beaten-down businesses in truck, auto, RV, and Energy recover," said FBR.
Actuant closed up Wednesday at $24.45, gaining $0.82, or 3.47 percent. FBR has a price target of $26 on them.
Trading volume was almost three times the daily 3-month average.
Monday, November 29, 2010
Solera (NYSE:SLH) Should Accelerate Acquisitions Over Next 6 Months
With the recent strength of the U.S. dollar, short-term revenue and earnings for Solera (NYSE:SLH) will be under pressure, but that shouldn't stop them from their quest to grow through acquisition.
Needham & Company thinks the strength of the U.S. dollar won't have too much effect upon Solera in the short term, and they'll continue to enjoy strong margins.
Needham said, "We have haircut our out-quarter estimates as the USD has recently appreciated versus the EUR (approximately 50% of Solera’s revenues are denominated in Euros). There is no change to our fundamental outlook. We believe that Solera is poised to continue to drive Adjusted EBITDA margins higher from the 43.9% mark posted in the most recent September quarter. We expect Solera to accelerate the pace of acquisitions between now and the June 2011 quarter as the most recent acquisition of material size was Solera’s October 2009 acquisition of AUTOonline."
Solera is trading at $48.41, falling $0.57, or 1.16 percent as of 12:19 PM EST. Needham has a "Buy" rating on them and a price target of $57, which they lowered from $58.
Needham & Company thinks the strength of the U.S. dollar won't have too much effect upon Solera in the short term, and they'll continue to enjoy strong margins.
Needham said, "We have haircut our out-quarter estimates as the USD has recently appreciated versus the EUR (approximately 50% of Solera’s revenues are denominated in Euros). There is no change to our fundamental outlook. We believe that Solera is poised to continue to drive Adjusted EBITDA margins higher from the 43.9% mark posted in the most recent September quarter. We expect Solera to accelerate the pace of acquisitions between now and the June 2011 quarter as the most recent acquisition of material size was Solera’s October 2009 acquisition of AUTOonline."
Solera is trading at $48.41, falling $0.57, or 1.16 percent as of 12:19 PM EST. Needham has a "Buy" rating on them and a price target of $57, which they lowered from $58.
Tuesday, November 23, 2010
SunPower (NASDAQ:SPWRA), Solar Company Losing Shine in 2011
After a strong 2010, there seems to be little growth heading into 2011 for the solar sector, and that is reflected with SunPower (NASDAQ:SPWRA), which had their earnings per share and price target lowered on them from Jefferies, although they maintained their "Hold" rating.
Jefferies said, "SunPower is distinguished by highest efficiency modules, a strong brand, price premium, and growing project business that can mitigate module commoditization. We will be more constructive on the stock if the company can execute to improve its ROA with help from AUO and reduce its module cost structure."
Earnings were lowered for full year 2010 by $0.01 to $1.51, and for full year 2012 from $1.56 to $1.83.
SunPower closed down Monday at $12.29, losing $0.02, or 0.16 percent. Jefferies has a price target of $15 a share on them.
Jefferies said, "SunPower is distinguished by highest efficiency modules, a strong brand, price premium, and growing project business that can mitigate module commoditization. We will be more constructive on the stock if the company can execute to improve its ROA with help from AUO and reduce its module cost structure."
Earnings were lowered for full year 2010 by $0.01 to $1.51, and for full year 2012 from $1.56 to $1.83.
SunPower closed down Monday at $12.29, losing $0.02, or 0.16 percent. Jefferies has a price target of $15 a share on them.
Friday, November 19, 2010
SunPower's (NASDAQ:SPWRA) Cost Structure Up Against Peers
SunPower (NASDAQ:SPWRA) has cost challenges in relationship to its competitors, moving Wedbush to downgrade the solar company from "Neutral" to "Underperform."
The overall solar industry is taking a hit as supply and demand continues to sort itself out as the German market is overly relied upon at this time.
Wedbush said, "We are downgrading SunPower shares following disappointing 2011 guidance issued Thursday in conjunction with the company’s analyst event. We remain concerned about SunPower’s cost structure relative to industry peers. While we expect SunPower may continue to enjoy its first mover advantage in the systems business in the short term, we believe systems business margins will come under pressure over time as competitors move downstream. We expect new entrants into the commercial and utility markets in Europe and the U.S. will attempt to capture market share using lower cost panels."
Sunpower was trading at $12.39, falling by $0.81, or 6.14 percent at 1:35 PM EST. Wedbush lowered their price target on them from $11 a share to $7 a share.
The overall solar industry is taking a hit as supply and demand continues to sort itself out as the German market is overly relied upon at this time.
Wedbush said, "We are downgrading SunPower shares following disappointing 2011 guidance issued Thursday in conjunction with the company’s analyst event. We remain concerned about SunPower’s cost structure relative to industry peers. While we expect SunPower may continue to enjoy its first mover advantage in the systems business in the short term, we believe systems business margins will come under pressure over time as competitors move downstream. We expect new entrants into the commercial and utility markets in Europe and the U.S. will attempt to capture market share using lower cost panels."
Sunpower was trading at $12.39, falling by $0.81, or 6.14 percent at 1:35 PM EST. Wedbush lowered their price target on them from $11 a share to $7 a share.
Canadian Solar (NASDAQ:CSIQ) Diversifying Out of Germany
With a lot of solar companies dependent on the German market for growth, Canadian Solar (NASDAQ:CSIQ) has been quietly and wisely diversifying from that market and booking more business, even though there is a supply and demand balance problem in the overall sector.
Canaccord said, "Recently, uncertainty around the level of 2011 demand and a supply imbalance has caused money to flow out of the solar sector and pressure valuations. That said, Canadian Solar appears to be building a strong book of business and is diversifying from Germany, the market with the most downside risk. Further, we believe the company is on track to achieve a scale and cost structure through internal enhancements and additional vertical integration that puts it in a strong position to remain profitable should demand momentarily soften in 2011."
Canaccord maintains a "Buy" rating on Canadian Solar, which was trading at $14.46, gaining $0.92, or 6.79 percent at 1:21 PM EST. Canaccord has a price target of $18 on them.
Canaccord said, "Recently, uncertainty around the level of 2011 demand and a supply imbalance has caused money to flow out of the solar sector and pressure valuations. That said, Canadian Solar appears to be building a strong book of business and is diversifying from Germany, the market with the most downside risk. Further, we believe the company is on track to achieve a scale and cost structure through internal enhancements and additional vertical integration that puts it in a strong position to remain profitable should demand momentarily soften in 2011."
Canaccord maintains a "Buy" rating on Canadian Solar, which was trading at $14.46, gaining $0.92, or 6.79 percent at 1:21 PM EST. Canaccord has a price target of $18 on them.
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