Risk of Bankruptcy Growing at Suntech Power Holding (STP) - Analyst
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Price: $0.53 --0%
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 12
Rating Summary:
1 Buy, 8 Hold, 12 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 12
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Suntech Power Holding Co., Ltd. (NYSE: STP) a manufacturer of photovoltaic (PV) cells and modules, is increasingly at risk of bankruptcy, according to analysts at Jefferies. Also concerning is the fact that if they do go bankrupt it is unclear how the Chinese will handle a liquidation.
In a company note dated March 23rd, a Jefferies analyst said “The risk of LDK/STP bankruptcy is growing but it has yet to be determined how a Chinese operating asset under BVI ownership functions under liquidation. We are in unchartered waters with respect to China's appetite to allow a high profile bankruptcy, nor the treatment of convertible bonds.”
The solar company has been plagued with difficulties, including tariffs imposed by the US government in response to alleged dumping. Tariffs aside, STP reported a 53.3 percent decline in revenue year-over-year in first quarter of 2012. Revenues at the company were impacted by the Chinese holiday, low inventory, and Suntech’s poor transition to demand driven production.
Jefferies analysts lowered their price target on Suntech Power Holdings (NYSE: STP) from $2.00 to $1.50 while maintaining their UNDERPERFORM rating on the company.
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 $2.02 yesterday.
In a company note dated March 23rd, a Jefferies analyst said “The risk of LDK/STP bankruptcy is growing but it has yet to be determined how a Chinese operating asset under BVI ownership functions under liquidation. We are in unchartered waters with respect to China's appetite to allow a high profile bankruptcy, nor the treatment of convertible bonds.”
The solar company has been plagued with difficulties, including tariffs imposed by the US government in response to alleged dumping. Tariffs aside, STP reported a 53.3 percent decline in revenue year-over-year in first quarter of 2012. Revenues at the company were impacted by the Chinese holiday, low inventory, and Suntech’s poor transition to demand driven production.
Jefferies analysts lowered their price target on Suntech Power Holdings (NYSE: STP) from $2.00 to $1.50 while maintaining their UNDERPERFORM rating on the company.
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 $2.02 yesterday.
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