Aided by the global solar renaissance and Chinese solar ambitions, low-cost Chinese solar player ReneSola Ltd. (SOL) is making up for the recession that affected its fiscal 2009 performance.
The company’s fortunes look good due to its geographically diversified customer base, ongoing expansion programs, a subsidy program in China, improving operating efficiencies, rising margins and material cost savings through its vertically-integrated production structure. ReneSola also expanded its presence into solar module original equipment manufacturing (OEM) services to make modules for others.
We believe that ReneSola is set for stronger growth in the first half of 2011. With a cheap valuation, we upgrade ReneSola to Outperform with a price target of $12.00.
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
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