Evergreen Solar shares jump as Lehman ups target
Shares of Evergreen Solar Inc. climbed today after a Lehman Brothers analyst raised his price target on the solar wafer maker, saying Wall Street is overly cautious on the company's new factory in Devens.
The stock advanced 69 cents, or 5.9 percent, to $12.36 in morning trading on the Nasdaq Stock Market.
Vishal Shah raised his price target to $15 from $12 in a client note early today. He said a recent analyst visit to the company's Devens factory left him convinced that Evergreen's capacity expansion is progressing on schedule.
"We believe Street estimates for 2009 are conservative and reflect execution risks," with the Devens factory, Shah wrote in a client note.
The new target implies he expects shares to gain 29 percent over Friday's close of $11.66. He cut his 2008 estimate on the company, forecasting a wider loss on higher expected startup costs from the factory, and maintained his "Equal Weight" rating. However, he raised his 2009 estimate and introduced a 2010 profit outlook ahead of Wall Street estimates.
Separately, Deutsche Bank's Steve O'Rourke said he was also upbeat following the analyst meeting, saying the company's plans for capital raising and capacity increases were positive.
But Evergreen's capital needs are "immense," he said. O'Rourke estimated the company would need about $700 million to fund capacity expansion through 2010, buy additional polysilicon and lay the groundwork for expansion through 2012.
O'Rourke maintained his "Hold" rating and $12 price target on the stock.
A company representative could not immediately be reached for comment this morning.
Shares of Evergreen Solar, which is headquartered in Marlborough, have traded between $7.52 and $18.85 in the last 52 weeks, and are off 32 percent since the start of the year. (AP)
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