STR Holdings (NYSE:STRI) Earnings to Increase in 2012 Says Auriga

STR Holdings (NYSE:STRI) earnings are expected to increase in 2012, although Auriga isn't convinced the company will grow share against its Asian competitors.

Auriga noted, "While we are skeptical of share gains vs. Asian competitors, in-line growth and reasonable price decline assumptions still lead to increased 2012 earnings. We expect STRI to execute cost declines behind price declines, but volume growth at existing customers should make up for the difference and lead to 14% y/y earnings growth in 2012...We shift valuation to 2012 estimates and increase our price target to $22, 12x our non-GAAP 2012 EPS estimate of $1.88."

Auriga reiterates a "Hold" rating on STR Holdings, which closed Tuesday at $18.34, down $0.42, or 2.24 percent. Auriga raised their price target on them from $20 to $22.