Credit Suisse Makes Comments On GT Solar (SOLR)
November 10, 2009 7:30 AM
GT Solar (Nasdaq: SOLR) reported F2Q10 results after markets closed yesterday. GT Solar reported Rev/EPS of $104mm and 7c, in line with preannouncement guidance of $100-$105mm and 6c-7c.
Although GT Solar did not provide quarterly guidance for F3Q, it reiterated FY10 Rev/EPS guidance of $450-$550mm and 45c-60c.
Credit Suisse revised its price target from $4 to $5 representing ~10x FY10 EPS.
Credit Suisse likes that GT Solar reaffirmed FY10 revenue guidance and confirmed limited LDK (NYSE: LDK) risk. Cash increased 27% q/q to $204mm and company has no debt.
Credit Suisse does not like that order intake remains weak with cumulative 1H10 orders at $30mm, (down
90% y/y). Additionally, GT Solar's end customer markets – Poly and wafers are the most over supplied end-markets and are still seeing price erosion
compared to panels which are seeing some stability.
