We expect positive momentum to continue as we see at least 20% upside potential to 2009 street estimates from on-schedule ramp/improved profitability at Devens facility. Street ests appear conservative as:
- ests do not fully reflect 135MW shipments guidance for 2009
- assume significantly low ASPs
- reflect generally conservative cost assumptions
- appear to be fully discounting financing concerns
We believe upside potential to target model is ~$0.90 in ’09 and ~$1.65 in ’10.
Lehman maintains OVERWEIGHT, target price from $12 to $15.