Lazard’s Shrestha Maintains BUY Rating on Energy Conversion Devices (Nasdaq:ENER)

Oct 13, 2009
Author: SCP Editor

October 13, 2009 – Analyst Comments – After noting that he hosted a conference call with the management team yesterday, Lazard’s Sanjay Shrestha weighed in on Energy Conversion Devices (Nasdaq:ENER) this morning, maintaining his BUY recommendation and posting a $20 price target.

Key Takeaways

·         Believes the company’s value proposition remains attractive in its target markets

·         Management reiterated weak credit market, challenges with PPA structure and growing shift to roof rent transactions have led to slowdown in company’s overall business

·         ENER expects to reduce production cost/watt to $1.50 by CY09, and total installed cost to about $3.50/watt by the end of CY210 with longer term targets of $2.50/watt.

·         Adjusting estimates to reflect near-term sluggish market outlook

·         Maintaining BUY rating and price  target of $20