Analyst Notes: FBR Maintains Underperform On TSL, Canaccord Adams Maintains Buy On FSYS

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03:14:35 pm on March 2, 2010

A few analyst notes to pass along today courtesy of Street Insider.  FBR Research maintains its underperform rating on Trina Solar (TSL) and Canaccord Adams maintains its Buy rating on Fuel Systems Solutions (FSYS).

Analyst comment on Trina:

“We are updating our estimates following TSL’s earnings report from late last week. Our quarterly estimates have changed to account for the demand full-in in Germany as well as the company’s guidance and commentary, although our overall CY10 and CY11 EPS estimates remain relatively unchanged. We believe that margins have peaked, and despite better-than-peer group cost reductions at Trina, ASP pressure will more than offset lower costs. Additionally, we are applying a higher valuation multiple to account for Trina’s execution…Nonetheless, our Underperform rating remains unchanged, and despite increasing our price target from $12.50 to $14.00, we believe there is significant downside risk to the current consensus estimates that has yet to be dialed in to the share price…Although our quarterly estimates have changed, our CY10/CY11 EPS estimates remain relatively unchanged at $1.63/$1.59, versus consensus of $1.94/$2.15.”

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

Analyst comment on Fuel System Solutions

“While expectations have already been set for a very strong Q4 and Q1 given the expiration of Italian cash for clunkers incentives, we assume an increasing likelihood of uneven OEM demand internationally into our 2010 model…Our 2010 revenue cash EPS estimates get revised to $394.6M/$1.82 from $475.0M/$2.70 due to a much more conservative outlook on OEM introduce 2011 estimates of $425.7M/$2.15.”

:::: >>> Click Here For Your FREE Fuel Systems Solutions Analysis

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