Zacks Investment Research downgraded shares of ReneSola Ltd.-ADR (SOL) from OUTPERFORM to NEUTRAL on February 06, 2014, with a target price of $3.25.
We are downgrading our long-term recommendation on ReneSola Ltd. to Neutral from Outperform based on its lackluster third quarter 2013 results. The company incurred a bigger loss in the quarter as it shut down a part of a polysilicon factory. The company's 2012 initiative to upgrade a polysilicon factory in Sichuan and integrate it with a more advanced facility failed. However, the company outstripped the shipment volume guidance even in a challenging macro environment and a competitive solar industry. In order to build its brand image, the company also introduced its proprietary technology to customers across multiple international markets. Although ReneSola hasn't seen profits since the second quarter of 2011, it now expects positive gross margins in the fourth quarter between 9% and 11%. Hence, we believe ReneSola shares will trade in line with the broader market indices.
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