Trina Solar LimitedNYSE
Trina Solar Follows First Solar Into Elite Sub-$0.40 Per Watt Territory
EnerTuition • 67 Comments
EnerTuition • 67 Comments
Thu, Dec. 8, 2:21 PM
- SunPower's (SPWR -4.7%) new restructuring plan is indicative of worsening solar photovoltaic market fundamentals, Axiom’s Gordon Johnson says.
- The analyst says SPWR thinks the U.S. residential market has “corrected” while he believes the correction seems “far from over," manufacturers continue to expand capacity causing price competition that is driving ASPs to new lows, lower cost targets translate to lower growth given the capital intensity of SPWR's PV projects.
- Johnson has Sell ratings on SunEdison (OTCPK:SUNEQ -5.8%), JA Solar (JASO -4%), Trina Solar (TSL), Yingli Green Energy (YGE -3.1%) and SolarEdge (SEDG -2.1%).
- Morgan Stanley says it remains cautious on the 2017 outlook given limited indications of a PV industry recovery, also noting that SPWR did not provide margin or EBITDA targets and said it would focus on maximizing cash flow and liquidity rather than to growth; the firm rates SPWR at Equal Weight with a $6 price target.
Wed, Nov. 23, 5:04 AM
Tue, Nov. 22, 5:30 PM
Wed, Nov. 16, 10:09 AM
- SolarCity (SCTY -0.9%) is downgraded to Sell from Hold with a $16 price target by Axiom Capital's Gordon Johnson, a day before shareholders will vote on the proposed merger with Tesla.
- Johnson now predicts a 70% chance of the merger's approval but is highly critical, saying "Tesla investors either: (a) lack a very basic understanding of the solar market, or (b) lack a very basic understanding of accounting."
- Johnson also downgrades several other solar stocks (TAN -0.2%) - JA Solar (JASO -0.9%), Trina Solar (TSL +0.7%) and Yingli Green Energy (YGE -3.9%) - to Sell from Buy, citing an expected drop in support for solar in the U.S. following the Trump election.
- He also cites caution on Chinese module prices given profit-dilutive quotes being submitted by Chinese module companies in the government's Top Runner program.
Wed, Nov. 9, 10:14 AM
- Solar stocks (TAN -5.4%) are among this morning's biggest losers ahead of a new Trump administration that likely will favor traditional energy sources over alternatives.
- "Trump would allocate more resources to traditional energy sectors (oil, gas and coal) than would Clinton, but allocate less to alternative energy industries,” says Mickey Levy, chief economist for the Americas and Asia at Berenberg.
- SPWR -13.9%, RUN -7.7%, VSLR -6.2%, FSLR -5.7%, SCTY -5.3%, JASO -4.2%, TSL -2.3%.
Thu, Oct. 6, 3:24 PM
- Formerly bearish Axiom Capital analyst Gordon Johnson upgrades his rating on the solar energy sector (TAN +0.5%) by two notches to Overweight from Underweight, and raises his ratings on Yingli Green Energy (YGE +4.6%), Trina Solar (TSL +1.3%) and JA Solar (JASO +4.5%) to Buy from Sell, as well as SolarCity (SCTY -2.6%) to Hold from Sell.
- A key reason for Johnson's "new-found solar optimism" is China's decision to cut solar subsidies, which could result in ~25 GW of Chinese “pull-in” demand in H1 2017, suggesting a undersupply in the solar market that should push prices higher.
- Johnson believes the stronger demand will cause the prices of all kinds of solar equipment to surge, resulting in higher margins and multiples for many solar companies.
- Also: OTCPK:SUNEQ +63% (see earlier), CSIQ +0.7%, SPWR +0.3%, FSLR -0.3%.
Wed, Sep. 28, 9:58 AM
- JA Solar (JASO +1.9%) says it is withdrawing from a European Union program that spares the company from paying tariffs in exchange for agreeing to a minimum price-floor for its products.
- JASO says the minimum price set by the European Commission’s Price Undertaking program is outdated and considerably higher than average selling prices in the bloc, and that all future panels sold to the EU will be manufactured outside of China, allowing it to circumvent the tariffs.
- JASO is the second manufacturer after Trina Solar (TSL -0.3%) to opt out of the EC’s Price Undertaking, which was set up in 2013 to allow Chinese exporters to avoid anti-dumping and anti-subsidy duties on solar cells imposed by the EU.
Wed, Aug. 24, 11:57 AM
- Solar manufacturers (TAN +0.2%) racing to build bigger and more advanced factories to crank out panels faster and cheaper are about to face a looming glut just as the panels start rolling off the assembly line, according to a Bloomberg report.
- At the same time, demand is slowing in China, the world’s largest market, where the government is reducing subsidies for solar farms commissioned after June 30, which fueled a rush of projects during H1 as developers added as much as 22 GW before the subsidy expired.
- Canadian Solar (CSIQ -2.3%) is building a a 350 MW facility in Brazil, and JinkoSolar (JKS -1.2%) is expanding output from a 450 MW factory that went into operation in Malaysia last year.
- Trina Solar (TSL -0.2%), the world’s largest panel maker, said yesterday that Q3 shipments would fall as much as 6.5% to 1.55-1.65 GW, while it has increased production capacity 7.1% after opening a 500 MW factory in Thailand in March; Yingli Green Energy (YGE -1.7%) said yesterday that it expects shipments to slip as much as 54% in the current quarter.
Tue, Aug. 23, 7:03 AM
Mon, Aug. 22, 5:30 PM
Wed, Aug. 10, 3:25 PM
- Analysts are taken aback by SunPower's (SPWR -29.6%) "guidance bomb" which calls for 2016 gross margins of 9.5%-11.5% instead of 13%-15% amid slowing demand for utility-scale solar projects and more competition in the panel market.
- The surprise is weighing on other stocks in the group: FSLR -7.5%, CSIQ -8.7%, SEDG -9.8%, VSLR -3.1%, JASO -4.5%, SolarCity SCTY -0.9%, SUNE -1.9%, Trina Solar TSL +0.1%.
- At least six firms slammed the stock with downgrades - J.P. Morgan, Oppenheimer, Deutsche Bank, Janney Capital, Credit Suisse and Avondale.
- R.W. Baird, who maintained his Outperform rating but slashed his price target to $21 from $37, said during SPWR's earnings conference call that he felt "blindsided... when you guys have publicly spoken over the past near couple of weeks, we didn’t hear any kind of hint of this at all."
- Credit Suisse’s Patrick Jobin, who cuts his rating to Neutral from Outperform as well as his price target to $12 from $32, says management now faces a credibility problem.
- Not everyone is negative: BofA/Merrill says SPWR's reduced guidance was a disappointment but the stock remains a Buy due to its technology and efficiency advantages, pipeline and backing from global energy giant Total.
Mon, Aug. 1, 3:00 PM
Mon, Aug. 1, 12:50 PM
Fri, Jun. 24, 2:10 PM
- Needham solar analyst Edwin Mok sees significant implications for the industry from the Brexit vote, amplifying bearishness on several names.
- The biggest hit will come for module and inverter makers like First Solar (FSLR -5.3%), along with Chinese makers, including Trina Solar (TSL -4.5%), JinkoSolar (JKS -5.6%), Canadian Solar (CSIQ -10.4%) and JA Solar (JASO -4.1%), he writes. A weaker euro means price impact: "Additionally, if Brexit results in slower demand, it could exacerbate module oversupply just as multiple producers are adding capacity. This in turn could also drive prices lower."
- A notable exception for Mok is SolarEdge (SEDG -4.5%), for which he maintains a Buy. Still: "The vast majority of [SEDG] sales are priced in the euro. With limited cost infrastructure in Europe as a natural hedge, weakness in the euro would have a direct impact to SEDG’s bottom line."
- And U.S. firms like SolarCity (SCTY -2.4%), Sunrun (RUN -7.4%) and Vivint (VSLR -4.7%) could benefit with zero international exposure and possibly lower costs of capital.
Thu, Jun. 16, 7:47 AM
- Trina Solar (NYSE:TSL) says CFO Teresa Tan is resigning effective July 15 to pursue other personal interests.
- TSL says Xu Ying, VP and strategy assistant to the CEO, will act as interim CFO until a permanent replacement is hired.
- Tan has served as CFO since January 2014; Xu joined TSL in 2006 and has been part of the company's core management team during that period.
Fri, Jun. 3, 3:00 PM