“Management did not disappoint investors with a strong beat and raise scenario on the Q2 conference. However, after raising estimates ahead of the call last week, we now find ourselves increasing both our estimates and price target again. We fully expected management to raise 2010 shipment guidance, which they did, but the surprise to our model came on the guidance of capacity reaching 1500MW in 2011 versus our prior estimate of 1300MW. In our view, the stock was inexpensive heading into the call, and now appears more undervalued at just 8.2x our 2011E EPS after the call. A long position in shares of Trina Solar (TSL, Buy) is one of our top ideas in the solar sector and we find the shares significantly mispriced as these levels.
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