Maxim Group reiterates Suntech Power STP at Sell and reduces its price target from $1.50 to $0.50 per share.
Maxim Group notes, "Following steep 1Q downside punctuated by $45m in provisions, STP foresees a 20% Q/Q rebound in shipments but gross margins stuck at ~5% in 2Q. With no end in sight for EPS and free cash flow losses, we foresee material risk to equity deflation and/or dilution and lower our target to $0.50, from $1.50."
STP closed at $2.02 on Wednesday.
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