UPDATE: Piper Jaffray Downgrades LDK Solar; Lowers PT

According to a research report published Thursday, Piper Jaffray has downgraded LDK Solar

from Neutral to Underweight, and lowered the PT from $2.50 to $1. In the report Piper Jaffray said, "We downgrade LDK to Underweight following our reset expectations for lower pricing in the solar value chain and our forecast for significant lack of profitability and an overburdened balance sheet. Our forecast for FY13 price declines for wafers in the mid-$0.20s and modules into the $0.60s likely keeps gross margins in negative territory for LDK throughout FY13, leading to an estimated loss/share of $5.47. These losses, coupled with a balance sheet with a 4.6x debt/cash ratio, is too burdensome for investors in our view." LDK Solar closed yesterday at $1.84.