Needham & Company Reiterates a 'Buy' on LDK Solar (LDK); Business is Challenging, but Concerns Over its Short-term Liquidity Are Overblown

Needham & Company reiterates a 'Buy' on LDK Solar (NYSE: LDK), PT lowered from $21 to $15.

Needham analyst says, "We believe near-term risk/reward for LDK is very favorable after the recent pull-back in share price, as investors’ worries over its short-term liquidity are overblown. Clearly, falling prices are impacting revenues and margins, and we are actively reducing our estimates and PT to reflect the challenging market dynamics. While LDK recently cancelled a bond offering, we believe the company has enough funding sources to support its business. We expect the 1Q11 earnings report on June 7 and the Intersolar trade show on June 8-10 to be positive catalysts for the stock."

Needham slashes FY11 EPS estimate from $3.10 to $1.97 and FY12 from $2.64 to $1.35.

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 $7.02 yesterday.

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