Auriga Maintains a 'Hold' on Trina Solar (TSL); Sacrificing Margin for Volume
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Price: $12.76 +0.87%
Rating Summary:
7 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Hold' on Trina Solar (NYSE: TSL) price target of $9.00.
Auriga analyst said, "Dreaming up breakeven/profitability amidst a market shift away from Europe...Cost lag vs. ASP decline is a tough slog as weak competition is slow to exit . Mid-teen GM is breakeven with some tough slog. At $0.85/Wp to $0.90/Wp ASP by 4Q12 (vs. ~$1.01/Wp in 4Q11), Trina Solar's cost structure needs to track ~$0.70/Wp by 4Q12 (vs. $0.94/Wp in 4Q11) even as it steadily trims operating expenses through 2012 to be profitable again. We note that cost structure gains are not linear, and are dependent on math (input cost), physics (conv. efficiency) and chemistry (materials). Even a return to profitability does not entail robust margin as excess capacity/weak competition, particularly in China, are slow to fade away."
For an analyst ratings summary and ratings history on Trina Solar click here. For more ratings news on Trina Solar click here.
Shares of Trina Solar closed at $8.63 yesterday.
Auriga analyst said, "Dreaming up breakeven/profitability amidst a market shift away from Europe...Cost lag vs. ASP decline is a tough slog as weak competition is slow to exit . Mid-teen GM is breakeven with some tough slog. At $0.85/Wp to $0.90/Wp ASP by 4Q12 (vs. ~$1.01/Wp in 4Q11), Trina Solar's cost structure needs to track ~$0.70/Wp by 4Q12 (vs. $0.94/Wp in 4Q11) even as it steadily trims operating expenses through 2012 to be profitable again. We note that cost structure gains are not linear, and are dependent on math (input cost), physics (conv. efficiency) and chemistry (materials). Even a return to profitability does not entail robust margin as excess capacity/weak competition, particularly in China, are slow to fade away."
For an analyst ratings summary and ratings history on Trina Solar click here. For more ratings news on Trina Solar click here.
Shares of Trina Solar closed at $8.63 yesterday.
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