Solarfun Not Having Fun; Jefferies Slashes Estimates
Solarfun Power (SOLF) shares are getting whacked today by a report from Jefferies solar analyst Paul Clegg, who basically points out that the company is suffering from the dual maladies of sagging demand and a weakening balance sheet.
Clegg, who has an Underperform rating and $3 price target on the stock, cut his numbers on the company today ahead of its Q4 results, which are due March 25. Clegg slashed his 2009 EPS estimate to 12 cents a share, from 51 cents. He now sees SOLF producing 200 MW in 2009, down from his old estimate of 244 MW. And he sees ASPs for SOLF this year falling more than 30 percent, to under two euros/watt. His revenue forecast drops to $645.8 million, from $815.9 million; he sees $733.8 million in 2008. Clegg asserts that the company’s outlook is “weakened by somewhat undifferentiated modules and a lack of strong distribution relationships in key markets.”
