GT Solar (SOLR), an equipment provider to the crystalline silicon solar segment, is best known for blowing blowing its IPO. The stock fell almost 15% in the first day (which prompted the inevitable lawsuits), and it’s now down about 25%.
Even given this price collapse, however, the stock still isn’t getting a ton of support from Wall Street. Even one of the underwriters, Credit Suisse, slaps it with a Neutral rating and price target nearly 15% below the IPO price.
Credit Suisse initiated with NEUTRAL, target $14.50.
- Investment thesis. (1)A late-cycle play on poly. The strongest positive for GT is the cycle-solar can approach grid parity with natural gas at a price point above the reinvestment threshold for polysilicon. (2) Bookings and backlog. Bookings momentum and backlog are critical metrics for this stock. Bookings will be lumpy, but we do not expect backlog to peak until first half 2009.
Bank of America initiated with NEUTRAL, target $16.
- We believe the risk/reward is balanced at these levels. We are optimistic on the overall potential of the company, but with no significant new polysilicon opportunity (difficulty in growing backlog consistently) we don’t see meaningful upside from current levels. Valuation support limits downside.”
Thomas Weisel and UBS (the other underwriter) were more kind, but solar speculators like stocks that double and triple, not ones that barely show upside from their IPO.
Thomas Weisel initiated with OVERWEIGHT, target $18.
UBS initiated with BUY, target $19.
Did You Get Screwed In GT Solar’s (SOLR) IPO? Class Action Lawyers Want To Hear From You (SOLR)
GT Solar (SOLR) IPO Bombs, Down 15% In Debut (SOLR)
GT Solar (SOLR) Prices IPO at $16.50: Hearty Welcome To a New Speculative Toy (SOLR)
Business Insider Emails & Alerts
Site highlights each day to your inbox.