Friedman, Billings, Ramsey & Co. analyst Mehdi Hosseini upgraded the Chinese company to "Market Perform" from "Underperform" and raised his price target to $48 from $25. The new rating implies he expects shares to rise about 13 percent over Tuesday's $42.47 close.
The decision not to build the plant is likely due to high obstacles facing any new polysilicon manufacturers, he said. Polysilicon is used to make solar cells.
Hosseini also raised his 2008 revenue estimate to $794 million from $716 million due to expectations for higher shipments than the company's own outlook. Analysts polled by Thomson Financial expect, on average, revenue of $713.5 million.
"Nonetheless, our higher revenue expectations are now offset by a lower margin profile (due to higher polysilicon cost assumptions) and higher interest expenses, making the net impact to earnings-per-share line nil," Hosseini said in a note to clients.
No comments:
Post a Comment