UPDATE: Maxim Group Cuts PT to $0.50 on Suntech Power Holdings; Equity Value Withering on Losses, Debts

Maxim Group reiterates Suntech Power

at Sell and reduces its price target from $1.50 to $0.50 per share. Maxim Group notes, "Following steep 1Q downside punctuated by $45m in provisions, STP foresees a 20% Q/Q rebound in shipments but gross margins stuck at ~5% in 2Q. With no end in sight for EPS and free cash flow losses, we foresee material risk to equity deflation and/or dilution and lower our target to $0.50, from $1.50." STP closed at $2.02 on Wednesday.