Auriga Downgrades LDK Solar (LDK) to Sell; Slope of Hope is Steep
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Price: $1.01 --0%
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Auriga downgraded LDK Solar (NYSE: LDK) from Hold to Sell, price target cut from $3 to $2.
Analyst, Hari Chandra, said, "We are not hopeful about LDK Solar, or its business fundamentals, as its focus on scale to the exclusion of all else has trapped it in a $3.35B debt morass. Operationally, LDK Solar's 4Q11 EPS loss at ($4.63) wiped clean $412M in inventory/purchase commitments/receivables via charges. A sharp workforce reduction (12% in 4Q11, 21% through April 2012 for a total of 8,450 employees) helps costs, but we reckon it still cannot field a competitive cost structure well into 2013. Further, we have even less faith in LDK Solar's accounting and its financials as its post-quarter guidance/operating metrics/performance commentary do not bear any resemblance to the numbers that it reports. Irrespective of its access to generous credit in China, we see continued losses at LDK Solar that will wipe away all shareholder value by 2014."
For an analyst ratings summary and ratings history on LDK Solar click here. For more ratings news on LDK Solar click here.
Shares of LDK Solar closed at $3.18 yesterday.
Analyst, Hari Chandra, said, "We are not hopeful about LDK Solar, or its business fundamentals, as its focus on scale to the exclusion of all else has trapped it in a $3.35B debt morass. Operationally, LDK Solar's 4Q11 EPS loss at ($4.63) wiped clean $412M in inventory/purchase commitments/receivables via charges. A sharp workforce reduction (12% in 4Q11, 21% through April 2012 for a total of 8,450 employees) helps costs, but we reckon it still cannot field a competitive cost structure well into 2013. Further, we have even less faith in LDK Solar's accounting and its financials as its post-quarter guidance/operating metrics/performance commentary do not bear any resemblance to the numbers that it reports. Irrespective of its access to generous credit in China, we see continued losses at LDK Solar that will wipe away all shareholder value by 2014."
For an analyst ratings summary and ratings history on LDK Solar click here. For more ratings news on LDK Solar click here.
Shares of LDK Solar closed at $3.18 yesterday.
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