Solar panel maker Trina jumps on Cowen upgrade
Solar panel maker Trina stock jumps as Crown upgrades, sees market share gains, profit in 2014
NEW YORK (AP) -- Shares of Trina Solar Ltd. jumped Wednesday as a Cowen and Co. analyst upgraded the Chinese solar panel maker's stock, saying that he expects the company to turn a profit next year.
THE SPARK: Analyst Robert Stone upgraded Trina Solar's stock to an "Outperform" rating from "Market Perform" and raised its price target to $10 from $5.80.
THE BIG PICTURE: Solar companies have suffered a steep drop in prices for their products after an aggressive push by China into the market. The supply increased even as European governments cut back on solar subsidies.
But hopes of a turnaround have been helping shares of solar parts makers recently. Trina's stock price has more than doubled this year.
Last month, the Chinese government announced plans to increase the country's use of solar power, which could help ease the glut of solar panels on the global market.
Also in July, the Europe Union and Chinese solar panel exporters reached a settlement in a long trade dispute that set a minimum price for Chinese companies' products in the EU. That's good for Trina, Stone said — small companies won't be able to discount their products, so customers are more likely to buy from bigger brands. He expects the company to gain market share.
THE ANALYSIS: Stone has a rosier view on the company's results. He expects the company's loss to narrow this year and that it will post an annual profit in 2014. Trina's last profitable year was in 2010.
SHARE ACTION: Shares rose $1.30, or 17 percent, to $9.12 in afternoon trading Wednesday, after reaching a 52-week high of $9.17 earlier in the day.
