Nomura Securities Downgrades Suntech Power (STP) to Reduce; Continues To Struggle Versus Peers
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Price: $0.53 --0%
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Nomura Securities downgraded Suntech Power (NYSE: STP) from Neutral to Reduce with a price target lowered to $1.90.
Analyst, Nitin Kumar, said, "Suntech reported weak FY11 earnings as impairments in 3Q11 eroded book value by 33%. While the company has improved its management of working capital, we see it lagging peers both in terms of cost-structure improvements and market-share growth. With pricing pressure leading to weak gross margins, we see Suntech making losses at the EBIT level through FY12~13F. We expect the company’s low capital base and stretched balance sheet to prevent meaningful cost-structure improvements."
Nomura slashes FY12 EPS loss from (1.03) to (1.71) and FY13 from (0.64) to (2.36).
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 $2.72 yesterday.
Analyst, Nitin Kumar, said, "Suntech reported weak FY11 earnings as impairments in 3Q11 eroded book value by 33%. While the company has improved its management of working capital, we see it lagging peers both in terms of cost-structure improvements and market-share growth. With pricing pressure leading to weak gross margins, we see Suntech making losses at the EBIT level through FY12~13F. We expect the company’s low capital base and stretched balance sheet to prevent meaningful cost-structure improvements."
Nomura slashes FY12 EPS loss from (1.03) to (1.71) and FY13 from (0.64) to (2.36).
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 $2.72 yesterday.
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