Needham & Company Maintains a 'Hold' on Suntech Power (STP); Gross Margins Respectable; Cost Cutting Not Enough to Stop Losses

Needham & Company maintains a 'Hold' on Suntech Power (NYSE: STP).

Needham analyst says, "STP reported a wider than expected loss in 3Q11, and decreased full year guidance as expected. While STP is able to leverage lower input costs to maintain respectable gross margins, and cut costs, we believe the tough pricing environment will lead to more losses over the next few quarters. Given the lack of profitability and limited visibility for a demand rebound, we remain defensive on the name...We cut our 2011 GAAP EPS estimate to ($2.40) and 2012 to ($1.36)."

For an analyst ratings summary and ratings history on Suntech Power click here. For more ratings news on Suntech Power click here.

Shares of Suntech Power closed at $2.23 yesterday.

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