Citi Has Buy On Trina Solar

Citi Investment Research is out with a research report on Trina Solar TSL and it has a Buy rating and a $25 price target on shares. In a note to clients, Citi Investment Research writes, "TSL had pre-announced earlier this month, and Q2:11 results were largely inline with our expectations. There's evidence of a strong demand rebound in Germany as the country represented nearly 2/3 of TSL's Q2 shipments. Full year shipment guidance of 1.75-1.80GWs implies the company will run all-out and work down inventories that probably exceeded 100MWs at the end of the qtr. Mirroring plans from low-cost Tier-1 Chinese peers, this will tend to keep general industry pricing under pressure. The effects of the sharp ASP decline in Q2 will linger into Q3, but cost decreases for TSL, particularly for poly, should cushion the impacts, and mgmt even suggested the possibility of a margin uptick in Q4." Shares of TSL gained $1.18 yesterday to close at $14.15.