UPDATE: Citigroup Initiates Suntech Power at Sell on Margin Weakness

Citigroup initiated Suntech Power (NYSE: STP) with a Sell rating and a $1.50 price target.

Citigroup commented, "With company-specific factors serving as an overhang, we believe STP shares are facing several near term headwinds above and beyond the structural and cyclical changes going on in the solar space. … While STP has been a market leader in many of the regions it operates in, volumes has never been an issue, it's been about margins – which remain very depressed. … Being the largest producer in a highly commoditized solar manufacturing space is a tough proposition, in our view."

Suntech Power closed at $1.58 on Tuesday.