Maxim Maintains Sell on Suntech Power Holdings

Maxim is out with its report today on Suntech Power Holdings STP, maintaining Sell. In its report, Maxim writes, "While STP delivered better-than-expected shipments and revenue, gross margin (x-1x items) of 15% trailed Street expectations by almost 300 basis points, while its outlook for 3Q11 gross margin of 11-13% suggest STP is poised for continued net losses in the current quarter. We expect earnings estimates to come down and for the stock to remain under pressure until evidence emerges STP can become profitable amidst continued pricing pressure." At the time of posting, shares of STP were trading pre-market at $5.17, up 1.37% from Friday's close.