The brokerage community has taken aim at LDK Solar (LDK: sentiment, chart, options) today. Ahead of the open, S&P Equity Research cut its rating on the shares to "hold" from "buy," and slashed its price target to $7 per share from $12 per share. Later in the session, Piper Jaffray held its "neutral" rating on LDK, but cut its 2008 and 2009 full-year earnings estimates for the company. The brokerage firm now expects the solar specialist to earn $3.26 per share in 2008 and $4.37 in 2009.

As reasons for the lowered estimates, Piper stated that it was accounting "for the rapid depreciation of the euro vs. USD and resulting supply chain dislocation," which could impact the entire solar sector. Further, the firm said a reduction in "LDK's average blended poly costs through end of '09" was necessary given "checks that poly pricing may be coming down faster than expected."

Despite the bearish news, LDK shares are up more than 5% heading into the final hour of trading. The equity appears to be rebounding from support at its 10-day and 20-day moving averages, which are in the process of turning north. Still, LDK must contend with round-number resistance at the 20 level, which has alternately provided support and resistance since early October.