Bank of America Raises PT On SOLR To $18.50

Bank of America, citing positive long-term growth prospects, is raising its price target from $14 to $18.50 on GT Solar SOLR. In the report, Bank of America writes, “Our new CY12 rev/EPS is $1.25B/$2.05 Vs prior forecast of $1.17B/$1.90. Due to the improved visibility on the LED side, we now value GT Solar off CY12 earnings compared to prior valuations based off of FY12 (March) estimates. GT Solar's peers across the broad spectrum of solar and LED are trading at an average multiple of ~8-10x forward earnings. GT Solar has typically traded at a discount to the peer group. But given the longer term growth prospects, we have moved up the multiple to the middle of the range on our CY12 EPS to arrive at our new PO of $18.50 (prior target was $14).” Bank of America maintains its Neutral rating on the stock. SOLR closed yesterday at $16.75.