Collins Stewart Launches With Buy Rating

Posted by Eric Savitz

Collins Stewart solar analyst Dan Ries today launched coverage of Trina Solar (TSL) with a Buy rating and $11 price target. Ries writes that his positive rating reflects the weak solar environment and ‘09 shipments below company guidance,he asserts that “as industry conditions improve…TSL will deliver consistent profitability and trend higher.”

Ries notes that his 2009 revenue forecast of $725 million is below the Street at $790 million, but that his EPS estimate of $1.51 is ahead of the consensus at $1.18. He contends Trina will be “a cost leader among makers of polysilicon modules” in 2009, and that it should be able earn a good margin even if module prices fall to $2/watt, as he thinks is likely. Ries said one concern is the balance sheet, with a net negative cash position of $219 million, which is a tad larger than the company’s market cap. But he adds that the balance sheet is “currently stable” and should improve over the next two years.

TSL today is up 27 cents, or 3.2%, to $8.80.

Trina Solar Announces the Inauguration of North America's Largest Single Rooftop Solar Installation

CHANGZHOU, China, March 20 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL - News; "Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the commemoration and completion of the largest roof mounted solar array in the United States. Trina Solar's Director of Sales & Marketing for North America, Jim Day, joined project partners and invited guests as Governor Jon Corzine of New Jersey and other officials dedicated the completion on March 5, 2009.

The Atlantic City Convention Center ("ACCC") project is North America's largest single roof-mounted solar array and consists of more than 13,400 modules. The project, which provides approximately 2.4 MW at peak capacity, was completed in December, 2008, and can power up to 280 homes and effectively curtail the release of 2,350 tons of carbon dioxide every year. The panels will produce about one-fourth of the building's energy and will provide the ACCC with energy savings of approximately $4.4 million over 20 years.

"We are very delighted by the completion of this significant project, which helps to bring clean, green solar energy solutions to Atlantic City," stated Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "We are proud that Trina Solar's modules were selected for this landmark achievement. The success of this project demonstrates our capacity to deliver large scale commercial solar solutions to market as we continue to broaden our distribution networks and project partnership agreements in the U.S."

About Trina Solar Limited

Trina Solar Limited (NYSE: TSL - News) is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline silicon ingots, wafers and cells to the assembly of high quality modules. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .

Trina Solar Announces Fourth Quarter and Fiscal Year 2008 Results

Trina Solar Announces Fourth Quarter and Fiscal Year 2008 Results link

Trina Solar Limited Q4 2008 Earnings Call Transcript link