Auriga Maintains Hold On Suntech (STP), Lowers PT, Finds Little Reason To Invest

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09:06:19 am on August 19, 2010

Auriga is out this morning maintaining its Hold rating on Suntech Power (STP), but lowered the price target to $9.  Hat tip to Street Insider for the analyst comment.

“We find little reason to invest in shares of Suntech. While the company touts itself as the largest solar module manufacturer, we find a lack of earnings power despite the increased scale of operations. Gross margins are in the mid-teens and operating margins are in single-digits, which compare unfavorably to our Buy rated stocks…We believe there are better investment ideas within the solar space including First Solar (FSLR) (Buy), Trina Solar (TSL) (Buy), Yingli Solar (YGE) (Buy), Solarfun (SOLF) (Buy), and Jinko Solar (JKS) (Buy), and would continue to avoid a new investment in shares of STP.”

====> Click Here For Your FREE Suntech Power (STP) Technical Analysis

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