Citi Speaks Up On Solar Names $TSL $STP $YGE
Green Stocks Central
Citi has initiated coverage on a few more solar names, adding TrinaSolar (TSL), Yingli Green Energy (YGE) and Suntech Power to itscoverage. Hat tip to StreetInsider for the analyst commentary.
TSL gets initiated with a Buy rating and price target of $30 which is about 50% higher from current levels. It’s down about 2% today and will face some resistance at the 200 day moving average. “We see solidexecution, no need for capital, conservative estimates, and sustainedcell/module cost advantages all at a discounted valuation. Our $30target is 11x our $2.82 2011 EPS (Street ~$2.22).”
YGE gets a Hold rating and price target of $15 which is more than 30% higher than current levels. It’s down more than 5% today and havingsome trouble at resistance of the 200 day moving average. “Poly move is high-risk/reward but should yield $0.05/W+ cost advantage. Ests looklow, but near-term execution risk high and we think more capital neededmid-‘11. Our $15 tgt is 11x our $1.36 C2011 EPS (Street $0.89).”
STP gets a Sell rating and a $7 price target which is about 30% lower than current levels. The stock is down 8% this morning, but has looked increasingly bullish and has finally punched through resistance of the50 day moving average. There is now support around the $10 level. “While GCL poly should help 2H:10, cell/module costs look structurallyhigh, pricing premium risky, and Pluto is complex mfg process just tokeep slight efficiency lead. $7 tgt is avg of 11x $0.53 C11 EPS and 1xYE11 book.”
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====> Click Here For Your FREE Trina Solar Analysis
====> Click Here For Your FREE Suntech Analysis
Citi on Solar: Buy TSL, Hold YGE, Sell STP
