UPDATE: Goldman Sachs Downgrades Trina Solar Limited to Neutral, Lowers PT on Continued Caution

In a report published Wednesday, Goldman Sachs analyst Amy Song downgraded the rating on Trina Solar Limited TSL from Sell to Neutral, and lowered the price target from $4.40 to $4.00. In the report, Goldman Sachs noted, “Although Trina is trying to diversify end-market geographic exposure in 2H13, its relatively high exposure to the EU market could still be the largest potential risk to earnings visibility given the near-term likelihood that a potential tariff settlement might result from the current EU/China tariff dispute. We believe any potential tariff scheme could limit EU penetration for Chinese cell/module makers and boost pricing competition in other markets, while the cost structure might even hike slightly due to a domestic poly tariff scheme, and this would likely result in another structural down-cycle for export-focused midstream makers.” Trina Solar Limited closed on Tuesday at $5.84.