Auriga lifts price
target on Trina Solar Ltd. (NYSE: TSL) to $36, representing 58% upside, saying new cost model reveals more profit. The firm maintained their Buy rating.
The price target is based on 15x their 2011 EPS of $2.41.
The firm comments, "We admit that we are late to publish our report as we have been lagging the consensus for a while, but our late quarter checks suggest shipments will likely exceed the higher end of guidance; we are modeling 215MW versus guidance of 200MW to 200MW. In addition we are also modeling module pricing to decline by 3% to $1.70/W. Our poly cost assumptions are $72/kg and 6g/W, while our non-poly costs decline by just a penny to $0.75/W. We have also assumed a $10mn net foreign currency loss in Q2. Our new estimates are above the consensus estimates of $335mn and $0.49."
The price target is based on 15x their 2011 EPS of $2.41.
The firm comments, "We admit that we are late to publish our report as we have been lagging the consensus for a while, but our late quarter checks suggest shipments will likely exceed the higher end of guidance; we are modeling 215MW versus guidance of 200MW to 200MW. In addition we are also modeling module pricing to decline by 3% to $1.70/W. Our poly cost assumptions are $72/kg and 6g/W, while our non-poly costs decline by just a penny to $0.75/W. We have also assumed a $10mn net foreign currency loss in Q2. Our new estimates are above the consensus estimates of $335mn and $0.49."
Source: streetinsider.com
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