Suntech Power Holdings Co., Ltd. (STP) Maintains 1-Overweight Rating

Analyst Vishal Shah at Barclays Capital (ADR) (NYSE: BCS) has maintained a 1-Overweight rating for Suntech Power Holdings Co., Ltd. (ADR) (NYSE: STP).

Barclays estimates a margin of 18.7% at Suntech for the fourth-quarter of 2009, and 19.3% for the fourth-quarter of 2010. Barclays expects the company’s poly procurement costs to decrease from 80/kg in 2009 to 50/kg in 2010.

The recent checks conducted by Barclays Capital suggests positive customer feedback on the company’s Pluto technology. The technology has potential to drive up margins by 10%, according to Barclays.

Barclays Capital has set a price target of $20 for Suntech Power Holdings Co., Ltd.