UPDATE: Maxim Lowers PT on Suntech Power Holdings to $2.50

Maxim is out with its report today on Suntech Power Holdings STP, lowering its PT to $2.50 from $4. In its report, Maxim writes, "Our forecast for negative EPS and cash flow make valuation on P/E and DCF impossible, while we view book value as an irrelevant measure given negative operating cash flow/W of its factories. We lower our PT from $4 to $2.50, representing its historical average 10x P/E of our best-case EPS estimate of $0.25 under a rosy scenario of pricing and cost/W in 2014E; we note downside to our price target and maintain our Sell rating." At the time of posting, shares of STP were trading pre-market at $4.96, down 2.17% from Monday's close.