Suntech Power Holdings Co. (STP) is one of the largest producers of PV solar modules in the world. The company is prudently expanding its revenue base to divergent markets around the globe, along with increasing megawatts shipped.
To cater to this rising demand, the company is furiously ramping up its capacity with plans to attain 2.4GW of cell & module and 1.2GW of wafer by the end of 2011. Along with this higher conversion efficiency through its Pluto technology-enabled modules, China’s subsidy program and improving operating efficiencies adds visibility to the story.
In light of the above positives we feel the current discounted valuation of the company is unwarranted. Thus we upgrade our recommendation on the company to Outperform.
SUNTECH PWR HLD (STP): Free Stock Analysis Report
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