Jefferies Cuts Price Target on Suntech (STP) from $70 to $25

Jefferies & Co. lowered its price target on Suntech Power Holdings (NYSE: STP) from $70 to $25, but maintains a Buy rating. The cut represents a 64% reduction in the firm's price target.

The firm believes the rapid weakening in the solar end markets has "accelerated reductions in A.S.P and in wafer prices and will result in fewer modules being sold than previously forecasted." Despite the negative near-term outlook, Jefferies believes Suntech will be one of the few long-term survivors of this credit crunch.

Shares of Suntech are trading relatively flat today; the stock most recently traded at $10.68, down just $0.07, or 0.65% from Friday's closing price. Jefferies new price target represents potential price appreciation of more than 130% from current levels.

Suntech Power Holdings Co., Ltd. designs, develops, manufactures, and markets various photovoltaic (PV) cells and modules to provide electric power for residential, commercial, industrial, and public utility applications worldwide.

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