Pacific Crest’s Bachman Downgrades Evergreen Solar (Nasdaq:ESLR) to SECTOR PERFORM
Nov 06, 2009
Author: SCP Editor
November 6, 2009 – Analyst Comments – Pacific Crest’s Mark Bachman weighed in on Evergreen Solar’s (Nasdaq:ESLR) Q3 results, stating that “given the near-term challenges ahead, we no longer have the conviction to recommend putting new money into the stock.” Bachman downgraded to SECTOR PERFORM.
Key Takeaways
· Modeled declines in ASPs (22% in 2010), underutilization at Devens, ramp expenses from China and continued losses from Sovello
· Downside risk is probably minimal at 0.5x price-to-book
· Evergreen may need to return to the capital markets late next year to increase debt or add further dilution
· Lowering 2010 revenue and EPS estimates to $355.3 million and ($0.03) from $466 and $0.29, respectively and removing price target
