STRI May Again Exceed Expectations In 1Q 10
Analysts at Macquarie Capital Markets reiterate their "outperform" rating on STR Holdings (NASDAQ: STRI). The target price for STRI has been raised from $21 to $23.
STRI posted higher-than-expected EPS and revenues for 4Q09. According to Macquarie Capital Markets, “Robust 4Q09 demand certainly helped but management executed according to plan, particularly with winning new Chinese customers and over time, we expect more where that came from.”
Macquarie Capital Markets said that STR Holdings’ outlook has been surprisingly bullish, “especially after setting expectations for limited guidance.” “1Q10 should far exceed expectations and remain strong like 4Q09 although some headwinds are possible in 2H10 due to the German FiT changes. That said, we believe full-year 2010 guidance for US$310–330m in sales and US$1.05–1.10 non-GAAP EPS is realistic, and very likely conservative, especially if management continues to execute as well as it did in 4Q09,” the analysts add.
