Great Buy but you might be able to get in the low $9's
S&P CAPITAL IQ CUTS OPINION ON ADSS OF TRINA SOLAR TO BUY FROM STRONG BUY
(S&P Capital IQ) Print
We cut our 12-month target price by $4, to $20, on lower revised price-to-sales below U.S.-based but above China peers. Our downgrade primarily reflects our view of increasing political risks associated with China made cells/modules imported to the U.S., where we expect TSL to generate as much as 20% of its revenues to the region this year. Also, we think a negative anti-dumping ruling is more likely to occur next month. As a result, we see downside risks to margins given potentially higher cost assumptions. We remain positive on the long term thesis but see near term headwinds.