The analyst firm lowered its forecast to 11.5 GW from 12 GW of solar installation, saying the government's goal of 14 GW for the year will be difficult to achieve.
"The rebound in demand is contingent on policy changes to address the quotas on utility scale development and FiT disbursement or reforming the incentives for distributed generation (companies agree the 8 GW target is not achievable under the current policy)," analysts Patrick Jobin, Brandon Heiken, and Maheep Mandloi wrote. "All companies agree that project returns are attractive in China at 8-12% unlevered and over 15% levered. The issue, we believe, is that the realization of these returns is contingent on getting the FiTs timely and with certainty and minimizing curtailment."
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates TRINA SOLAR LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRINA SOLAR LTD (TSL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."