ReneSola Upside Shines Brightly

Through its short history, ReneSola (SOL) regularly adapted to changing market dynamics. The company is aggressively ramping up its polysilicon and solar wafer production capacities. Going forward, increased captive generation of polysilicon will improve its cost structure and enable wafer capacity expansions.

Globally, rising solar wafer sales, along with escalating crude and new long-term sales agreements, should collectively generate significant earnings growth. Buoyed by these positive factors and impressive results, SOL increased its 2008 production output and sales guidance.

Accordingly, with a predominantly bullish outlook and an attractive relative valuation, we maintain coverage of SOL with a BUY recommendation and a six-month target price of $20.00, representing 37.5% upside potential.

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