UPDATE: Wedbush Downgrades Exide Technologies to Neutral, Lowers PT on Uncertainty Following Vernon Closure

In a report published Friday, Wedbush analyst Craig Irwin downgraded the rating on Exide Technologies

from Outperform to Neutral, and lowered the price target from $6.00 to $2.00. In the report, Irwin noted, “We are downgrading shares of Exide to NEUTRAL from OUTPERFORM on elevated uncertainty after the recent Vernon, CA facility closure, raising issues around a potential impact on the balance sheet and near-term profitability. What has changed is Exide was posting improving margins on operating initiatives, but the Vernon closure puts a damper on the timing for a recovery. The knock-on effect of Exide's becoming an incremental buyer of lead and recycling services providing positive lead price pressure, is possibly derailing the margin improvement, and elevating balance sheet risks.” Exide Technologies closed on Thursday at $1.02.