UPDATE: Sterne Agee Reduces PT to $8 on SemiLEDs Corporation on Capacity Utilization and Operating Loss Concerns

Sterne Agee reiterated its Buy rating on SemiLEDs Corporation

but reduced its price target on shares from $10 to $8. Sterne Agee said, "The stock will likely trade flat with the strong top-line offset by capacity utilization and operating losses that were below our expectations. Cash burn will likely persist over the next few quarters given the lack of any near-term catalysts to move utilization substantially higher, as well as management's focus on working down inventory." SemiLEDs Corporation closed at $2.63 on Tuesday.