...Despite boosting its full year revenue outlook to a range of $850 million to $900 million (from a range of $770 million to $808 million), traders are sending the stock down almost 5% in mid-day trading. S&P threw in the towel:
Adjusted Q2 earnings per ADS of $0.76 vs. $0.83 is $0.07 below our estimate, reflecting a higher forex loss than we expected. Sales rose 69% from Q1 on strong demand, capacity expansion, and higher average selling prices. Gross and operating margins narrowed on higher polysilicon costs. We lower our '08 earnings per ADS [American Depositary share] projection by $0.11 to $3.61 to reflect forex losses. Although we see geographic expansion and stable near-term margins aiding growth, we cut our 12-month target price by $7 to $40, reflecting a reduced P/E multiple based on our view of various risks.
S&P downgrades Trina Solar (TSL) from Buy to HOLD, target cut from $47 to $40.
