UPDATE: Jefferies Downgrades Sharp Corporation to Underperform, Lowers PT on Reduced Forecasts

In a report published Thursday, Jefferies analyst Atul Goyal downgraded the rating on

from Hold to Underperform, and lowered the price target from $4.40 to $3.52. In the report, Jefferies noted, “Given the unprecedented banks' exposure to Sharp's balance-sheet (debt of c. $12b vs. equity of c. $1b), ironically Sharp has found it easy to borrow. But the prospects for its main businesses are worsening. We cut our street-low forecasts (forecasting losses for next 2 years), lower price target to $3.52 (from $4.40) and also lower the rating by a notch to Underperform (from Hold). Incidentally, now the stock is also easier to borrow.” Sharp Corporation closed on Wednesday at $4.43.