UPDATE: Goldman Sachs Lowers PT to $8.50 on STR Holdings

Goldman Sachs reiterates its Neutral rating on STR Holdings

and lowers its price target to $8.50 from $9 following the company's negative pre-announcement on inventory de-stocking. Goldman Sachs notes, "STR negatively pre-announced 4Q11 results owing to lower-than-expected volume as customers destocked inventories at year-end to satisfy demand. Revenue of $36.5 mn (down 35% qoq) came in 20% below the midpoint of the company's targeted range. The revenue shortfall, combined with a $0.05/share impact from one-time expenses and a higher tax rate, drove a reduction in expected non-GAAP loss per share to ($0.04)-($0.02) vs. the previously targeted range of $0.09-$0.12 and our/consensus estimates of $0.11/$0.10. We reduce our 2012E/13E non-GAAP EPS 17%/6% to $0.50/$1.00, primarily owing to a more subdued volume recovery." STRI closed at $9.03 a share on Friday.