AmTech Remains Positive on Suntech; $68 Price Target (STP)

Following yesterday's announcement of a 4.5MW building integrated PV system, American Technology Research is out with a research note on Suntech Power Holdings (NYSE: STP). Click here to read StreetInsider's note on the contract. The firm currently has a Buy rating and $68 price target on Suntech. This target represents potential upside of about 58% from Suntech's price of about $43.00 today.

AmTech calls Suntech's new contract "relatively small in terms of shipment levels", but believes the announcement is substantial based on several factors:

• AmTech believes demand in Spain will remain strong through the second half of '08, when installation is expected
  
• AmTech expects "France to become instrumental to solar growth over the next 2 years..."
  
• "France needs to meet its EU renewable target of 20% by 2020", with solar being one of the most viable solutions
  
• First Solar (Nasdaq: FSLR), the best-of-breed solar play, recently increased shipments to EDF Energies Nouvelles, showing further strength in France's end market.

AmTech said it likes Suntech "given the recent reset in estimates following the company’s latest earnings call, the strengthening of the balance sheet through a successful convert, and reasonable valuation versus comparables."

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. [BCS]

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