Kaufman Bros. Downgrades LDK Solar (LDK) to Hold; Cutting Earnings Forecasts
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Price: $1.01 --0%
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Kaufman Bros. downgraded LDK Solar (NYSE: LDK) from Buy to Hold. PT lowered by $8 to $24.
Kaufman analyst says, "Our positive earnings growth story was predicated on
the company being able to ramp production and drive earnings through higher
volumes and utilization levels that would offset pricing declines of 15%-20%. Given the Italian uncertainty, overall solar installations are not ramping as quickly as expected and large inventories of solar wafers are being reported in the supply chain. With this scenario, we question whether or not the industry can take the additional production even if LDK is able to provide it. Presumably, the company will be able to sell the wafers, but likely at an even lower cost. Therefore, we believe the company will likely slow production ramps resulting in lower volumes. What it does sell will likely be at a lower price."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $8.21 yesterday.
Kaufman analyst says, "Our positive earnings growth story was predicated on
the company being able to ramp production and drive earnings through higher
volumes and utilization levels that would offset pricing declines of 15%-20%. Given the Italian uncertainty, overall solar installations are not ramping as quickly as expected and large inventories of solar wafers are being reported in the supply chain. With this scenario, we question whether or not the industry can take the additional production even if LDK is able to provide it. Presumably, the company will be able to sell the wafers, but likely at an even lower cost. Therefore, we believe the company will likely slow production ramps resulting in lower volumes. What it does sell will likely be at a lower price."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $8.21 yesterday.
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