Deutsche Bank Starts Trina Solar (TSL) at Hold, Sees 10%-15% Earnings Growth Annually

Deutsche Bank initiates coverage on shares of Trina Solar (NYSE: TSL) with a Hold rating and $11 price target.

Shares have been under pressure over the past few weeks and will remain under pressure as its peers have caught up on its previous cost advantage and its 2012 outlook is unlikely to improve.

The firm believes that TSL may be able to gain market share by its tier 1 brand status and its solid balance sheet, but due to continued margin pressure and rising working capital the company will remain to experience challenges. These problems arise as customers demand longer credit terms.

For 2012, Deutsche estimates 13 percent revenue growth earnings per share of $0.58, well below the Street's current forecast of $1.97. The firms estimates are based on an output of 2.55GW in 2012, ASPs of $1.08/W, and poly costs of $37.1/kg exiting Q4'12.

An analyst at Deutsche comments, "We expect Trina’s earnings to grow at 10%-15% annual rate from this timeframe and expect shares to trade in-line with sectors exhibiting similar earnings characteristics"

For more ratings news on Trina Solar click here and for the rating history of Trina Solar click here.

Shares of Trina Solar closed at $10.23 yesterday.

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