NEW YORK (TheStreet) -- Shares of Trina Solar (TSL) are slumping 2.87% to $8.46 in pre-market trading on Friday as the stock was downgraded to "hold" from "buy" at Deutsche Bank. The firm also lowered its price target to $9 from $11.
The lower rating and price target come as the outlook for the China market is worsening in the second half of the year.
"TSL appears to be executing well in a robust demand environment in the U.S. and China. However, with outlook for 2H China market worsening, we expect increased pricing pressure to continue to impact 2H margins," Deutsche Bank wrote in a note to investors.
Yesterday, the Changzhou, China-based solar company reported better-than-expected results for the 2016 first quarter.
"Moreover, 2016 shipments outlook assumes strong sequential growth in 2H and would require demand from China to be flat in 2H and demand from U.S./other non-Chinese markets to pick-up 20% and 45% H/H, which seems aggressive in our view," the firm added.