North Coast Solar Stocks

May 18, 2009

Wedbush Morgan on Energy Conversion Devices

Filed under: ENER — Tags: , , , , — Jason @ 3:00 pm

Energy Conversion Devices – (ENER)
Hold – Price 16.19 on May 11
by Wedbush Morgan

Third-quarter earnings per share of three cents, versus 17 cents a year ago, were in line [with our estimate], despite lower solar-product revenue…down by 5.7%…due to lower-than-expected shipment volumes. With strong cost controls and reductions in production, operating margin offset the weaker top line. Our 14 price target (P/E of 12.7 times) is down from 16, as we continue to apply the low end of our 10-to-20 times solar price/earnings multiple. Our lowered fiscal- year 2010 EPS estimate of $1.10, down from $1.63, adjusts for continued weak demand, planned manufacturing furloughs and financing risk, offset by the niche product targeted for commercial rooftops and countries with high government incentives. Shares could trade nearest book value of 16 per share, until positive trends related to demand and financing return. Market cap: $794 million.

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