LDK Solar (NYSE:LDK) Raises Guidance, Implied Strength in Pricing, Wafer Demand

LDK Solar (NYSE:LDK) recently raised their guidance for the fourth quarter of 2010 and full year 2011, implying pricing strength and increased demand for wafers.

Needham says, "Yesterday before market open, LDK substantially raised 4Q10 and 2011 guidance ranges. We believe the updated guidance implies strong wafer demand and pricing trends in the near-term, which bodes well for at least 1H11. Additionally, with strong growth in its module and polysilicon businesses and the recent announcement of purchasing a majority stake in Solar Power Inc (SOPW.OB, N/R), LDK is clearly executing its strategy to become a diversified solar company. We believe the stock looks cheap at a 2011 P/E of <4X, even with yesterday's run-up. We see more positive preannouncements coming in the solar group, and anticipate some positive policy news coming in the near-term. Therefore, we see further upside to share price."

Needham & Company maintains a "Buy" rating on LDK Solar (NYSE: LDK), which closed Tuesday at $12.39, up $0.06, or 0.49 percent. Needham raised their price target on them from $19 to $23.