Analyst Sees Negative Q3 Preannouncement from Trina Solar (TSL); Reiterates Sell, $5 Price Target

Shares of Trina Solar (NYSE: TSL) are up more than 6 percent Monday morning as the company responded to a trade action filing from Oct. 19th which claimed Trina had unfairly imported crystalline silicon PV cells and modules from China. Trina said "the allegations made by the U.S. petitioners will eventually prove to be unfounded and that Trina Solar's transactions with its United States customers were made in accordance with international trade practices."

While investors are cheering the news this morning, not everyone is bullish. Gordon Johnson of Axiom Capital reiterated a Sell rating and $5 price target earlier, saying the company will issue a negative preannouncement ahead of its third-quarter results. The analyst believes the reduced outlook will be inline with lowered guidance at Canadian Solar (Nasdaq: CSIQ), SunPower (Nasdaq: SPWRA) and Power-One (Nasdaq: PWER).

Johnson is now looking for Trina to report a third-quarter loss of 2 cents per share and a fourth-quarter loss of 54 cents per share. The Street is currently looking for a gain of 24 cents per share for the third quarter and an 18 cent per share gain for the fourth quarter.

With Trina Solar shares around $7.67 at last check, Axiom's price target suggests potential downside of about 35 percent.

Visit our Analyst Ratings page to track all the market-moving analyst action on shares of Trina Solar.

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