SOLR May Post Its Best Quarter For Bookings
Analysts at Raymond James reiterate their "outperform" rating on GT Solar International Inc (NASDAQ: SOLR).
According to Raymond James, “...evidence has mounted that a resumption of growth in backlog is finally at hand after five consecutive quarters of declines.” “Specifically, on February 25, the company announced new DSS furnace contracts totaling $200+ million, for half a dozen customers, mainly in China, including JA Solar… With at least $240 million of order flow quarter-to-date (surpassing our fiscal 4Q10 revenue estimate of $192 million), this will easily be GT Solar’s best quarter of bookings since the PV industry’s downcycle began in late 2008,” the analysts say.
Raymond James cautions investors that SOLR is unlikely to sustain backlog growth. “In all likelihood, backlog will remain lumpy, with quarters of both robust bookings (such as the current one) as well as quarters with lackluster order flow,” the analysts add.
