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

According to StreetInsider.com,  Piper Jaffray is initiating coverage on Suntech Power (STP) today with a Neutral rating and a price target of $13.  It calls the company’s current overcapacity, distressed balance sheet and lower utilization a reason to stay on the sidelines until a meaningful pull back in the stock.  They believe unabsorbed overhead and lower margin will persist through 2010.  On the bright side, they believe the company is a cost leader vs European suppliers and can survive the sharp drop in module pricing. 

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