Jefferies & Company Maintains STR Holdings Buy Rating
March 18, 2010 10:07 AM
Jefferies & Company analysts Paul Clegg, David Paek and Patrick Uotila maintained their Buy rating with a price target of $18 for shares of STR Holdings, Inc (NYSE: STRI).
The analysts said that STR Holdings is well positioned in the solar energy industry and not facing the same level of pricing pressure as many of its peers are.
Guidance given by management was cautious but that may be in part because investors have high expectations of STR Holdings.
The Jefferies & Company analysts wrote, "during the IPO, STR mgt said it did not expect to give guidance, but relented this quarter. However, given the high level of expectations suggested by the stock performance (~18.5x mid-range '10 EPS guidance), analysts appear to be looking for signs that there is upside to new '10 guidance (even though a beat). Based on expectations for >50% volume growth in '10, guidance does not appear to anticipate a repeat of the strong 4Q'09 GM performance."
