From the Seeking Alpha article quoted above.
Looks like GT Solar is well on its way to meeting or exceeding the current high revenue mark for FY2012. I would not be surprised to see Mr. Gutierrez revise his guidance up yet again when he reports Q4 FY2011 results.
With no additional orders, $919.14 million in revenue should translate to an EPS of $1.34, right in the middle of GT Solar's guidance. I think it will get more orders, which means the EPS of $1.50 is very achievable. A simple 10x multiple means a $15/share stock. If you set the multiple equal to the EPS growth rate (27%), you get a $40.50/share stock.[color=red][/color]When the $218.9 million order was announced (27-Apr-2011), the stock price soared 11.89% (from $9.75 to $10.91) on 214% volume increase. Keep in mind, this is after the price had fallen from its recent high of $11.68 in mid-January. Most of that decline was probably due to Fidelity taking profits and some officer selling.
With the run-up in price after the announcement, it's obvious someone else besides me has done the math. This may mark an excellent entry point before the Q4 FY2011 earnings release and any potential analyst revisions. I would like to see Piper Jaffray change its rating from underweight to overweight. According to Yahoo! Finance, current average analyst rating is 1.8 [(Strong Buy) 1.0 - 5.0 (Sell)].
GT Solar is currently undervalued to its FY2012 earnings.
Disclosure: I am long SOLR.
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