Auriga Updates Trina Solar's Estimates

In a recent research report, Auriga has updated Trina Solar's (NYSE: TSL) 2012 estimates from $0.29 to $0.25, and revenue from $1,530M to $1,601M.

In the report, Auriga noted, “At $10.33 TSL compares to C2012 EPS estimate of ($0.25) and ~23.0x our C2013 EPS of $0.45. To value solar PV stocks we discount our three year forward earnings estimate, adjust for net cash, and assign a high single-digit to low-teen earnings multiple consistent with high growth companies with continued cash requirements and lack of pricing power amidst macro political/economic stresses. For trough valuation we use tangible book value as the reference metric. To reflect Trina Solar's c-Si module cost leadership offset partially by operational slip ups amidst challenging industry conditions, we value the stock at ~0.5x 2013 TBV to arrive at our ~$9 price target.”

Auriga maintains its Hold rating on Trina Solar, which closed yesterday at $10.33.