Collins Stewart Maintains a 'Buy' on Trina Solar Ltd. (TSL); Raises Price Target

May 18, 2009 11:27 AM EDT

Collins Stewart maintains a 'Buy' on Trina Solar Ltd. (NYSE: TSL), raises price target from $11 to $22.

Collins analyst says, "A combination of factors drives the adjustment to our price target. Since we launched coverage, the prospect for China to become a significant consumer of solar modules has improved, as a limited solar subsidy program has been announced and more are expected in the months ahead. Valuations in the solar industry having risen in recent weeks, due in part to China's potential and in part to a general recovery in equity valuations. We also believe that TSL's orders have improved since late March. In the roughly two months since we launched coverage module ASP erosion is consist with our forecast, but polysilicon prices have decline somewhat faster than expected, which can potentially aid TSL margins by 3Q09."

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