Home
JANCO Partners has downgraded Energy Conversion Devices (ENER) from Market Perform to Sell today and lowered the price target to $8.75..
Hat tip to StreetInsider.com for the following analyst comment:
“We are downgrading the company’s stock as a result of the company’s restructuring plan and the 20% planned head count reduction. We see the layoffs as a sign from management that a rebound in demand is materializing slower than originally anticipated. Furthermore, we expect competition in the BIPV space to continue to increase over the next twelve months. As a result we are lowering our sales estimates. We now expect FY2011 sales of $327 million down from $383 million as a result of lower expected MW shipments. Maintaining a consistent valuation methodology of applying a NTM P/Sales multiple of 1.2X to our FY2011 revenue estimate results in a price target of $8.75.”
Shares of ENER are down about 4% today and closing in on all time lows once again.
