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To: stockman_scott who wrote (47651)	1/14/2009 3:10:54 PM
From: bob zagorin	Read Replies (1) \| Respond to of 57684

Broadpoint.AmTech Downgrades Suntech (STP) to Neutral Broadpoint.AmTech downgrades Suntech Power Holdings (NYSE: STP) to Neutral. The firm has a $7 price target on the stock. The firm cites "a strong move off of the November lows, and ahead of..." expected difficult solar earnings moving into 1H09. Recent checks have indicated to AmTech that utilization rates will be closer to a 50-60% range, which compares to the firm's previous model looking for Suntech to report rates of 63%. With about $6.05/share in net debt at the end of Q3, and an expected loss of $31.8 million in Q4, AmTech does not believe Suntech will be able to improve its balance sheet for "some time." AmTech lowered its Q1 sales estimate from $419 million to $357 million and its EPS estimate from $0.06 to $0.00. For FY09, the firm cut its sales and EPS estimates from $1.9 billion and $0.82 to $1.8 billion and $0.66, respectively. The Street is currently expecting Q1 sales of $417.93 million and EPS of $0.03, with FY09 sales of $2.17 billion and EPS of $0.79. The firm believes Suntech "will be one of the long-term survivors in China given its scale but considering the balance sheet overhang and the risk of further estimate revisions" does not feel the stock should be trading at a premium valuation (trades at 13x FY09 estimates, compared to the group average of 6-7x). Shares of Suntech are currently down 7.9% to $9.95. Suntech Power Holdings Co., Ltd. designs, develops, manufactures, and markets various photovoltaic (PV) cells and modules to provide electric power for residential, commercial, industrial, and public utility applications worldwide.