Piper On Suntech Power (STP): “Distressed Balance Sheet Keeps Us On the Sidelines”

According to StreetInsider.comPiper Jaffray is initiating coverage on Suntech Power (STP) today witha Neutral rating and a price target of $13.  It calls the company’scurrent overcapacity, distressed balance sheet and lower utilization areason to stay on the sidelines until a meaningful pull back in thestock.  They believe unabsorbed overhead and lower margin will persistthrough 2010.  On the bright side, they believe the company is a costleader vs European suppliers and can survive the sharp drop in modulepricing. 

Piper On Suntech Power (STP): "Distressed Balance Sheet Keeps Us On the Sidelines"