Auriga Maintains Buy Rating On Power One (PWER) Ahead Of Earnings

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05:13:13 pm on January 31, 2011

Auriga released a report this morning reiterating its Buy rating on Power One (PWER) with a $14 price target which represents about 30% upside to current levels.  Auriga first initiated a Buy rating on PWER back in December and called the company the “solar inverter leader”.

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The firm expects strong Q4 results when the company reports on Feb 3rd, bolstered by Italian demand.  They highlight the importance of how expansion plans will effect margins which should be clarified during the call.  Expect near term volatility until investors become more comfortable with sales increasing towards the latter half of the year.

Technically, PWER remains in a long base following its surge last summer.  What I’m looking for is a breakout from this base to provide an entry signal.  That would occur on a breakout above the 11.80 with heavy volume.  Perhaps the earnings report will be the catalyst the stock needs to achieve this breakout.

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Comments  

All indications are that PWER will have a strong Q4 and analysts opinions are generally in the “buy” area. It appears that one could buy PWER for its green inverter business and get their digital technology thrown in for “free.” SO, why does PWER have very high short [ositions?
Help!

 
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