Roth Capital affirms ReneSola (NYSE: SOL) with a Neutral rating and $1.30 price target following Q2 results and outlook.

Tuesday, ReneSola reported Q1 EPS of ($0.09) and revenue of $349 million, versus consensus estimates looking for a loss of $0.04 per share and revenue of $368.2 million.

Analyst Philip Shen noted the following key takeaways from the quarter:

• Exiting OEM module capacity. At one point in 2014, SOL had as much as 1.1GW of OEM assembly capacity. Management is now winding down its OEM capacity by YE'15. The company is maintaining its internal capacity of 6k MT of poly, 2GW of wafer, 240MW of cell, and 1.2GW of module;
• Downstream. SOL connected 58MW of UK projects in Q1 and ended the quarter with a total of 96MW on balance sheet. The company expects to sell 35MW in Q2, and we estimate projects could be sold at ASPs between $1.60- 1.80/W, implying a revenue opportunity of ~$60mn. Additionally, we believe SOL has visibility into 100-150MW of projects that could be developed in 2015, though timing of completion and projects sales is unclear. Management is expected to provide a detailed pipeline later this year; and
• LED product development. SOL indicated that LED sales are increasing in certain markets, particularly Indonesia, and it appears the company is seeing attractive margins at a little above 30%, though revenues from this segment remain low.

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