Collins Stewart Downgrades Suntech Power to Neutral (STP)

Collins Stewart is out with its report today on Suntech Power

, downgrading STP to Neutral. In a note to clients, Collins Stewart writes, "Given concerns about STP's position in a poor solar demand environment and its exposure to Italy (including CY10 GSF projects), we reduce our rating to Neutral. Our price target is reduced to $8 (from $10), reflecting a 6x P/E (down from prior 7.5x) applied to our revised $1.32 CY12 EPS forecast. In a poor demand environment, STP's $1B net debt burden is more of a concern than it was in good times, contributing to the reduction made to the P/E assumption in our PT." At the time of posting, shares of STP were trading pre-market at $8.12, down 0.61% from Wednesday's close.