Gilford Securities Reiterates Neutral Rating on Trina Solar Limited on Lack of Profitability Clarity

In a report published Wednesday, Gilford Securities reiterated its Neutral rating on Trina Solar Limited TSL. Gilford Securities noted, “We see no clarity on overall industry profitability. Our analysis indicates continuing malaise. This is despite robust global demand for the solar industry. Given the lack of capacity rationalization, weaker prices continue to favor downstream project developers. We forecast global solar demand to be around 36GW in 2013 and 44GW in 2014. Despite being a cost leader ($0.51/Watt non-silicon cost in 4Q2012), further restructuring of Trina's obligations might increase investor interest. It is conceivable that our earnings estimates might be conservative due to more efficient operational cost control, but gross margin improvement is slim in the current pricing environment.” Trina Solar Limited closed on Tuesday at $4.22.