Trina Solar (NYSE:TSL) Should Remain Cost Leader in Solar

Trina Solar (NYSE:TSL) appears to be able to hold their position as cost leader in the solar industry in 2011, as they sales and capacity increase over the year.

Auriga said, "We expect Trina to maintain its industry-leading cost position as it expands capacity and sales. This powerful combination is largely a result of a strong and sober management team and stands in stark contrast to industry peers brought down by higher cost legacy manufacturing assets. We see 1Q11 results as a catalyst to re-rate the stock when results show TSL bucking the expected seasonality trend at the expense of Western solar.

"We expect higher than previously expected volume in 1Q11 with better ASPs offset by a persistently lower euro. We increase our 2011 sales estimate to $2.12bln from $2.09bln, and increase our 2011 EPS estimate to $3.88 from $3.84."

Auriga maintains a "Buy" rating on Trina Solar, which closed Tuesday at $26.32, up $0.70, or 2.73 percent. Auriga raised their price target on Trina from $38 to $41.