Goldman Sachs (NYSE:GS) said it is maintaining its "Sell" rating on Suntech Power (NYSE:STP) shares, while keeping its price target of $8.40 a share in place.
Analysts at Goldman said they "believe non-organic growth would offer more strategic benefits as we expect excess wafer capacity to be released at the end of the year, considering the industry has started adding capacity in China from start-2010 and ramping up takes approximately 6 months."
They added "there is still overhang from the Global Solar Fund (A/R outstanding) and slower production at Pluto that could be major near-term hurdles."
Second quarter results were close to Goldman's expectations, coming in at revenue of $625 million and gross earnings of $114 million, while Goldman was looking for $621 million in revenue and $106 million in profits.
Margin guidance for the third quarter was also below expectation from Suntech, as they're now saying the best case scenario is in the high teens, but could be in the mid-teens as well.
2 comments:
GS, they rip off their paying customers. How much do you think they would do for those who don't even pay with their 'analysis'? That's right, nothing. Pure sc*m.
Suntech Power Holdings (STP) maintains "Sell" on Goldman Sachs (GS)
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