PiperJaffray Reports on Petrohawk Energy

In a report released today, PiperJaffray commented on Petrohawk (NYSE: HK). In the report, PiperJaffray was positive in its assessment of the company.

PiperJaffray writes, "We have reviewed the latest solar pricing trend and feel more comfortable to revise down our EPS forecasts by 13%/9.5% for FY11E/12E after cutting our wafer price and polysilicon cost assumptions. However, we want to highlight that Comtec does offer higher leverage in the case of a sector rebound given its high earnings sensitivity to wafer price and its potential to benefit from a polysilicon price decline. We have lowered our PT to HK$4.90 from HK$5.40 (8x FY12E P/E, multiple unchanged) after the earnings cut. Maintain OW as the recent price correction has largely reflected the risk of lower ASP. With customers' order at 770MW, we see enough buffer for our shipment forecast of 540MW for 2011E. Current valuation of 5.6x FY12E P/E is attractive, in our view."

PiperJaffray currently has an Overweight rating on Petrohawk Energy. Shares of the company closed on Friday at $25.64, up from $24.17 at the open.