S&P INITIATES COVERAGE OF ADSS OF TRINA SOLAR WITH A BUY RECOMMENDATION
We think TSL will grow at a rapid pace, reflecting our view that demand for its products will continue to outpace supply. We also believe TSL's integrated model will help keep margins above those of competitors as solar module prices fall. We are concerned about future capital financing and the extension of solar incentive programs, but think risks are largely priced into TSL shares after recent depreciation. The shares are now trading at a notable discount to peer averages. Our '08 earnings per ADS estimate is $3.18, and our 12-month target price is $47, based on P/E analysis.