Citi on Solar: Buy TSL, Hold YGE, Sell STP

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10:07:49 am on July 12, 2010

Citi has initiated coverage on a few more solar names, adding Trina Solar (TSL), Yingli Green Energy (YGE) and Suntech Power to its coverage.  Hat tip to Street Insider 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 solid execution, no need for capital, conservative estimates, and sustained cell/module cost advantages all at a discounted valuation. Our $30 target is 11x our $2.82 2011 EPS (Street ~$2.22).”

====> Click Here For Your FREE Trina Solar Analysis

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 having some trouble at resistance of the 200 day moving average.  “Poly move is high-risk/reward but should yield $0.05/W+ cost advantage. Ests look low, but near-term execution risk high and we think more capital needed mid-‘11. Our $15 tgt is 11x our $1.36 C2011 EPS (Street $0.89).”

====> Click Here For Your FREE Yingli Analysis

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 the 50 day moving average.  There is now support around the $10 level.  “While GCL poly should help 2H:10, cell/module costs look structurally high, pricing premium risky, and Pluto is complex mfg process just to keep slight efficiency lead. $7 tgt is avg of 11x $0.53 C11 EPS and 1x YE11 book.”

====> Click Here For Your FREE Suntech Analysis

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every one posted this article then can drive stock down it is easy money. what is citi ? human? i don’t thing analyst comment on the firm with a low class word cat and dog. read a real post from company don’t read a salad article

 
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