North Coast Solar Stocks

August 19, 2009

Suntech shares edge down a day ahead of 2Q report

Filed under: STP — Tags: , , , , — Jason @ 11:49 am

Shares of Suntech Power Holdings edge lower day before company reports 2nd-quarter results

Wednesday August 19, 2009, 11:49 am EDT

NEW YORK (AP) — Shares of Suntech Power Holdings Co. Ltd. (STP) fell in midday trading Wednesday, a day before the Chinese solar energy company plans to report second-quarter results.

Shares were down 52 cents, or 3.2 percent, at $15.80.

On average, analysts polled by Thomson Reuters expect the company to post a second-quarter profit of 2 cents per share on revenue of $343.1 million.

Jefferies & Co. analyst Paul Clegg said he expects second-quarter results to beat estimates and for management to forecast a favorable outlook for the rest of the year.

Clegg warned that in the near term, industry pricing competition could hurt the company.

“As the module volume leader, investors should expect Suntech to confirm expectations for further average selling price declines,” said Clegg. He expects prices to decline to about $1.80 per watt or lower by the end of the year, from a current range between $2.30 per watt and $2.40 per watt.

Still, Clegg said the company is positioned to generate rapid growth in key markets and to remain a leader on cost and quality.

He rates the stock “Hold” with a $14 price target.

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