Auriga initiated coverage of Power One (PWER) after the bell yesterday with a Buy rating and $14 price target.  The firm sees PWER as a the leader in the solar inverter market with solid management and strong cash flow.  While they see near term volatility as the industry shifts from Europe to the US and China, they expect volatility to subside in the 2nd half of next year.

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Some other highlights of the call..

– industry slowdown fears  and ensuing price war are overblown and consensus estimates too low
– sees PWER increasing market share
– PWER has cost structure in same class as a First Solar (FSLR) as a significantly lower multiple
– one of the few US based renewable energy stocks with real and growing cash flow (STRI, FSLR the others)

Shares of PWER aren’t moving much today on the Buy rating, up about 1%.   Shares are currently carving out a fairly sloppy cup with handle base (forming handle now).  A break from this handle formation would provide a compelling entry entry point.