Maxim Group Reiterates Hold Rating on Trina Solar Limited on Little Reason for Optimism in 4Q12 Review

In a report published Wednesday, Maxim Group reiterated its Hold rating on Trina Solar Limited TSL. Maxim Group noted, “Even as TSL delivered upside to 4Q12 shipments and 2013 guidance of 29% Y/Y, gross margins <5% reveal no earnings leverage from higher demand. With solar manufacturing's price elasticity paradox suggesting no margin growth from demand upside, normalized gross margins <15% point to continued losses/cash burn and an opex structure that is unsustainable. Still, with years of cash, we expect the stock to trade in a wide $3-$6 range and maintain our Hold.” Trina Solar Limited closed on Tuesday at $4.24.