Collins Stewart Lowers Solarfun Power Holdings (SOLF) Price Target
March 08, 2010 12:27 PM
Collins Stewart analyst Dan Ries maintained his Buy rating for shares of Solarfun Power Holdings Co. (Nasdaq: SOLF) and lowered the price target form $10 to $9.
Ries said that Solarfun Power Holdings Co. 4th quarter 2009 shipments of 87.7 MW came in slightly lower than his forecast of 90 MW, which resulted in missing his revenue forecast of $185.9 million, when the company reported revenue of $183.5 million.
EPS of 3 cents per share were well below the consensus of 24 cents per share.
Despite the weak points, gross margin, balance sheet and volume all improved.
The Collins Stewart analyst wrote that, "minor changes were made to our CY10 forecast, primarily to reflect slightly lower processing costs, greater volume and the detrimental impact the reduced euro value will have on ASPs. While our ASP assumptions decline sharply in 3Q10 when the German FIT cut is expected to hit. We note that SOLF will stop purchasing external cells that quarter as new capacity comes on line and that will help to stabilize margins despite the falling ASP."
