In a research report published Wednesday, Roth Capital analyst Philip Shen reiterated a Neutral rating on shares of Renesola LTD (NYSE:SOL) and reduced the price target to $1.16 (from 1.30), after the company posted a second-quarter revenue miss of $268 million, compared to consensus of $283 million as a result of lower-than-expected project sales of 6.4MW.

Shen wrote, “Through this cycle, SOL has not demonstrated an ability to generate consistent profitability. Although we see the potential for an improving earnings outlook as a result of project sales over the next six quarters, we look for management to demonstrate the sustainability of their downstream business model as the company may, in our opinion, become increasingly more dependent on JVs rather than primary project development.”

Bottom line: “A key area of focus ahead will be on downstream projects as management scales down its module business. As the company builds/sells 300MW of projects through YE’16, we could see some improvement in earnings. While we increase our 2016 estimates, we don’t give full credit with all the recent strategy changes. Maintain Neutral until management demonstrates a sustainable business model on higher project sale volumes.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a total average return of -19.5% and a 19.4% success rate. Shen has a -35.2% average return when recommending SOL, and is ranked #3714 out of 3730 analysts.

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