Jesup & Lamon’ts Yerger Rates Suntech (NYSE:STP) as Buy with $60 Price Target

Aug 21, 2008
Author: SCP Editor

August 21, 2008 – Brian Yerger, at Jesup & Lamont updated coverage today on Suntech Power Holdings (NYSE:STP) rating the stock a BUY and placing a $60 price target. This is on the heels of a strong Q2 report from the company, which beat consensus estimates, as well as Yerger’s.

Q2 Results:

·         Revenues of $480.2 million, up 51% Y/Y, ahead of Yerger’s estimate of $434.7 million

·         Net income of $65.2 million, or $0.38 per ADS, ahead of Yerger’s estimate of $0.31

Amongst Yerger’s talking points were that 2009 polysilicon visibility is increasing, the company has raised its revenue guidance (to a range of $2.05 to $2.15 billion from $1.9 to $2.1 billion), and his conclusion is that a reduced target of $60 (from $64) reflects a lower premium multiple from 29x 2009 EPS to 25x 2009 EPS estimates of $2.40.