Hapoalim Securities Raising Estimates On Trina Solar (TSL)

Hapoalim Securities is raising estimates on Trina Solar (NYSE: TSL) after the solar cell company reported strong earnings and lifted 2010 guidance. Hapoalim also raised its price target to $21 from $17.

In a note to investors, Hapoalim Securities writes, "As was largely expected following solid 2Q10 reports throughout the industry, TSL reported stellar results and raised its 2010 shipment guidance. Internal production costs improved to ~$1.08/watt, and with poly costs headed below $50 by 2Q11, TSL is on the path to be the first to produce c-Si modules below $1.00/watt. Though its plans to purchase external cells and wafers will weigh on profitability near-term, we expect TSL to generate industry-leading margins over the next few quarters. While raising our PT from $17 to $21, our concerns about 2011 ASPs keep us at a HOLD rating."

Hapoalim goes on to say, "Raising Estimates on Higher Shipment Guidance and Lower Poly Costs: Along with plans to increase capacity to 1.5 GW of cell/module and 1 GW of ingot/wafer, management also boosted its 2010 shipment guidance from 750-800 MW to 900-930MW. In turn, we are raising our 2010 EPS estimate from $1.80 to $2.33, while the improved cost outlook drives our 2011 EPS estimate from $1.45 to $1.81."

Shares of Trina Solar Limited gained $1.29 yesterday to close at $23.70.

You Can't Afford Miss To Out On These Money Making Trading Ideas.