UPDATE: Collins Stewart Downgrades China Sunergy to Neutral

Collins Stewart is out with its report today on China Sunergy (NASDAQ: CSUN), downgrading CSUN to Neutral from Buy.

In its report, Collins Stewart writes, "Our revised forecast calls for CSUN to basically breakeven over the next four quarters, and we therefore can no longer recommend the shares and reduce our rating to Neutral from Buy. Our 12-month price target is reduced to $1.60 from $2.50. CSUN will need to reduce costs, control expenses and commercialize its high-efficiency solution in the quarters ahead to meet the 2H12 forecast."

Shares of CSUN closed Wednesday at $1.23.