Piper Jaffray Lowers Energy Conversion Devices (ENER) Price Target

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11:06:28 am on November 11, 2008

According to StreetInsider.com, Piper Jaffray has lowered the price target of Energy Conversion Devices (ENER) from $56 to $38 but maintains its neutral rating.

The firm notes that “ENER management guided to flat to slightly down ASPs for FY09 which seems difficult to achieve in our opinion given the dramatic decline in polysilicon module prices. The company maintained revenue guidance for FY09 and tightened solar GM guidance to 34%…We believe that ENER may run into pricing pressures since the drop in poly module prices has reduced the cost advantage of ENER’s laminates…We believe it is logical to assume that customers may be negatively impacted by the dollar strength and thus ENER may be prone to offer price breaks longer term. ENER believes it will not have to lower ASPs because it did not take price increases earlier in the year and offered long term contracts instead.”

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