Auriga says they're maintaining their "Buy" rating on Trina Solar (NYSE:TSL), citing their low cost manufacturing model, which generates above-average profits.
Auriga said, "Trina Solar is set to report solid results next Tuesday, Nov 30, before the market opens. While our model changes have been slow to materialize, we find the Street is lagging as well. We are forecasting over $1.00 in EPS in both Q3 and Q4, and have raised our estimates substantially in 2011. To finish 2010, we believe that Trina has been selling into a robust market allowing for ASP increases and higher volumes, while the start of 2011 should not be as bearish as the Street estimates portray. While most solar stocks are viewed as trading vehicles, we regard Trina Solar as an investable idea. Trina's low cost integrated manufacturing model produces a highly bankable product, which delivers above-average profitability. In addition, Trina's management team carries a high degree of credibility and allows for greater transparency and visibility into the business."
Trina was trading at $24.26, gaining $0.90, or 3.85 percent at 12:50 PM EST. Auriga has a price target of $38 on them.
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