Suntech Power Holdings "outperform," target price raised

12/05/06 - Credit Suisse

NEW YORK, December 5 (newratings.com) - Analyst A Chan of Credit Suisse maintains his "outperform" rating on Suntech Power Holdings Co Ltd (STP). The target price has been raised from $37.50 to $38.00.

In a research note published yesterday, the analyst mentions that the company has announced another sales contract, including the sale of modules worth $50-$90 million to the US in 2007-2009. The contract exhibits Suntech Power Holdings’ ability to win new market contracts with better-than-anticipated ASPs, the analyst says. Credit Suisse expects the company to transition towards systems integration in order to sustain or boost its margins.