Suntech Power continues to roll
I thought I keep adding to my list of positive news for Suntech Power Holdings (NYSE: STP).
10. Signs a multi-year supply contract with SunEdison company. Value of the contract is expected to be $50 million to $90 million over the term of the contract.
This contract win gives Suntech power more exposure to United States and in particular California. SunEdison is the largest solar energy services provider in North America, which is why I consider this a big win.
11. Suntech’s subsidiary MSK Corporation (which underperformed last quarter) signed a deal ARISE Technologies Corporation, to distribute the MSK Just Roof(TM) system in Canada.
12. Suntech Power’s CEO Shi Zhengrong was featured in an Op-Ed column (premium content) by Thomas L. Friedman in New York Times. Pretty good press for the company and its CEO.
13. Credit Suisse maintained its ‘outperform’ rating and upped its price target to $38 from $37.50.
Analyst A Chan of Credit Suisse, “the company has announced another sales contract, including the sale of modules worth $50-$90 million to the US in 2007-2009. The contract exhibits Suntech Power Holdings? ability to win new market contracts with better-than-anticipated ASPs, the analyst says. Credit Suisse expects the company to transition towards systems integration in order to sustain or boost its margins”. (via newratings.com)
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Following are the 9 positive things that I wrote about on November 24th in the article titled:
SunTech Power - Momentum seems to be building
- Suntech Announces Contract to Supply World?s Largest Solar Power Plant in Spain.
- China plans to build the world?s largest Solar power plant. We don?t know if Suntech Power is playing a role in this yet but its a pretty good bet that they will play a role.
- Recently upgraded to ?Outperform? by Credit Suisse
- Credit Suisse has a price target of $116.30 per ADR
- Recently upgraded to ?Overweight? by Thomas Weisel.
- Suntech already has ?Buy? ratings from Citigroup and Goldman Sachs
- Citigroup has a price target of $52
- Sunny outlook by Motley Fool. It?s also a ?Motley Fool Rule Breakers? recommendation.
- Three recent positive articles on Suntech Power on SeekingAlpha by Average Joe Investor, Will Gabrielski and Daniele Guerini. Asif Suria, also picked Suntech Power in his August issue of SinLetter. Count me as another Seeking Alpha contributor who is bullish on this stock.
* I am long STP
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