A few analyst ratings/notes to highlight this morning.
The biggest was the two notch upgrade of LDK Solar (LDK) by Bank of America from Underperform to Buy due to lower risks of oversupply. Following the LDK Solar earnings report, I mentioned that I thought the stock offered a very compelling entry down at these levels and has the potential to double or triple if you’re patient. I still believe that. Shares of LDK gapped up this morning and remain up about 6% with good volume. Click Here For Your FREE LDK Solar Analysis
Citigroup is maintaining its Hold rating on American Superconductor (AMSC) and lowering the price target from $39 to $35. Click Here For Your FREE American Superconductor Analysis
“AMSC announced a $445M/30mth contract w/ their primary customer, Sinovel, on core electrical components for 1.5MW turbines…While this contract is of similar duration and size to the prior contract ($470/28mths), it is disappointing relative to our model and below the current run rate. Pricing details were not available, but mgmt noted they’ve maintained solid prices, implying gross margins are very likely in the high 30% range, perhaps even into the low 40% range. This does provide more revenue visibility as Sinovel works to bring 3.0MW turbines into scale production and continue development on 5.0MW turbines, albeit already reflected in our model.”
Shares of AMSC are off about 2% today, but looking increasingly bullish after finding support around $25/share. I’m looking for a longer term entry point if it pulls back closer to the $30 range.
Canaccord Adams maintains Buy rating on RINO International (RINO), but cuts price target from $34 to $25. Click Here For Your FREE Rino Intl Analysis
“Although the higher commission expense can be a timing issue, the company expects margins to stay in this range going forward. Moreover, RINO now expects the new facility to be completed in May 2011, and until then it will continue to be capacity constrained. We had expected some of the capacity to be completed by the end of this year, and our forecast now appears to be aggressive. We have lowered our 2011 revenue and gross margin forecasts. Our adjusted EPS estimates, on a fully taxed basis, are reduced to $1.54 for 2010 and $1.90 for 2011, from our previous estimates of $1.68 and $2.24,
respectively.”
Shares of RINO are recovering just a bit today after getting hammered for two days following its earnings report.