Evergreen Solar (ESLR) Going Higher, 20% Upside to Estimates

Lehman, like Piper and Jeffries, saw $600 million in new contracts for Evergreen Solar (ESLR) and a 20% jump in the stock and got excited. Today, Lehman raised its target for ESLR from $12 to $15:

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.

See Also:
Piper Sees More Upside For Evergreen Solar (ESLR) Too
Evergreen Solar (ESLR): That 20% Pop Was Just The Beginning

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