Zacks Analyst Blog Highlights: Suntech Power Holdings Company, Real Goods Solar, China Sunergy, ReneSola and Foster Wheeler AG - Press Releases

For Immediate Release

Chicago, IL – August 19, 2010 – Zacks.com Analyst Blog features: Suntech Power Holdings Company Ltd. (STP), Real Goods Solar Inc. (RSOL), China Sunergy Co. Ltd. (CSUN), ReneSola Ltd. (SOL) and Foster Wheeler AG (FWLT ).

Here are highlights from Wednesday’s Analyst Blog:

Suntech Q2 Hit by Charges

Suntech Power Holdings Company Ltd. (STP) posted a second quarter loss of 97 cents per American Depository Share (EPADS) compared to earnings of 6 cents in the year-ago quarter. However, results in the reported quarter were affected by non-cash impairment charges and provisions, which reduced EPADS by $1. The Zacks Consensus Estimate was pegged at a profit of 8 cents per EPADS for the reported quarter.

Suntech registered total net revenues of $625.1 million, an increase of 6.3% from $588 million in the first quarter of 2010 and an increase of 94.8% from $321 million in the second quarter of 2009. Total photovoltaic (PV) products shipment increased 11.9% over the first quarter of 2010 and 181.7% year-over-year. Revenues in the reported quarter also comfortably beat the Zacks Consensus Estimate of $586 million.

Suntech Power is one of the largest producers of PV solar modules under its proprietary Pluto technology with a geographically-diversified customer base. Positive factors include ongoing expansion programs, higher conversion efficiency through its Pluto technology-enabled modules, subsidy program in China, and improving operating efficiencies. However apprehensions over the tepid module demand in Europe, rising competition, and financial stability of its customers overshadow the positives.

Our Neutral recommendation on the stock indicates that it would perform in line with the broader market. In the near term we believe its Zacks #1 Rank (Strong Buy) peers likeReal Goods Solar Inc. (RSOL), China Sunergy Co. Ltd. (CSUN) and ReneSola Ltd. (SOL) are more promising compared to the Zacks #3 Rank (hold) Suntech Power stock.

Foster Wheeler Upgraded

International credit rating agency Standard & Poor's upgraded the rating on Foster Wheeler AG's (FWLT ) corporate debt to investment grade. The current “BBB-“ rating is a notch higher than the previous “BB+” non-investment grade rating awarded by the same agency.

Foster Wheeler has improved its operating performance dramatically with big order wins and prudent financial control. In the most recently concluded quarter, new orders in Global Power Group were $162 million, impressively above $83 million in the prior-year period. The company’s increased orders reflect strong global demand for its CFB boiler technology and an improving market condition, particularly in Eastern Europe and the Far East.

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