Auriga Lowers PT On SOL To $15

Auriga has lowered its price target on ReneSola Lts. SOL from $23 to $15 based on and in-line quarter, but one that fell below EPS estimate forecasts. Says Auriga, in its report, “We reduce our target to $15 from $23 after a good report but mixed management commentary. The discussion of module ASPs reaching $1.10/w in 4Q11 will certainly cause some soul searching in the solar sector and likely help pressure the group through the remainder of earnings season. We disagree with the forecast as a proxy for the solar industry, but also feel a lack of confidence in management could lead investors to avoid the stock in the near term. Despite the gloomy predictions for plummeting ASPs, the price action of SOL suggests the stock may have found a bottom. The bit of relatively good news from Italy yesterday likely helped as well. Our new target is 8x our new 2012 EPS estimate of $1.83.” Auriga maintains a Buy rating on the stock. SOL closed yesterday at $8.66.