UPDATE: Jefferies Reduces PT to $1.50 on Suntech Power Holdings; Going Concern Questioned
Jefferies lowers its price target from $2 to $1.50 on Suntech Power Holdings (NYSE: STP).
Jefferies comments, "STP took $69M of charges and lost ($0.74) per share in 1Q12. Excluding charges, the EPS would have been ($0.35)/sh, better than the Street expectation. We maintain Underperform and lower PT to $1.5 from $2.0. The company continued to manage its working capital and reduce opex. But the company's cost structure remains disadvantage relative to peers and its onerous debt of $2.3B requires restructuring and a liquidation of GSF assets at a loss in our opinion."
STP closed at $2.02 on Wednesday.
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