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Company Profile: SatCon Technology provides utility-grade power-conversion services for commercial and renewable-energy installations and distributed energy markets.
Share Price: $3.59 (March 29)
Stock Performance This Year: -20%
Analyst Consensus: Eleven of 13 analysts covering SatCon Technology rate the stock a "buy," including those at Stifel Nicolaus, Raymond James and Piper Jaffray. The other two analysts are split between "hold" and "sell" ratings. The average price target of $5.77 represents potential upside of 64% from current levels.
Bullish Case: Jefferies analyst Jesse Pichel has a "buy" rating and $6 price target on SatCon following the company's presentation at the firm's annual global clean technology conference. Pichel notes that the presentation was upbeat and that CEO Steve Rhoades and CFO Donald Peck answered tough questions in the wake of the stock's rapid selloff after the latest earnings release.
"Satcon is a solar-inverter supplier that is leveraged to the high-end inverter market, low-cost manufacturing base in China, and solar growth in North America and China," Pichel writes in the Feb. 24 research report. "We believe these factors will allow SATC to grow revenue/earnings significantly in 2011 and 2012."
TheStreet Ratings has a "hold" rating on SatCon, having upgraded it from "sell" in February. The model highlights SatCon's "poor" profit margins, while acknowledging strength in the company's revenue growth, price performance and "impressive" record of earnings per share growth.