UPDATE: Deutsche Bank Raises PT to $3 on Renesola

Deutsche Bank increases its price target to $3 (previously $2.50) on Hold-rated Renesola

following Q4 results and guidance. Deutsche Bank comments, "Similar to peers, SOL reported Q4 shipments well ahead of guidance and consensus ests. However rapidly declining ASPs in the quarter led to gross margin of -9.1% (ex. inventory provision). The company expects module pricing to decline an additional ~17-18% in 1Q12 and wafer pricing decline ~8% leading to flat to slightly positive gross margins. We estimate the company will be break-even at best for the next two quarters in wafers and while modules are more profitable on a gross level, rising opex and geographic expansion will offset some of this benefit." SOL closed at $2.81 a share on Friday.