JA Solar (JASO) shares are sharply higher in early trading after Collins Strwart analyst Dan Ries lifted his rating on the stock to Buy from Hold, setting a $7.50 price target.
Ries gave three primary reasons for the upgrade, which comes ahead of the company’s earnings report, which is due next Tuesday:
- A belief that solar cell prices have increased and will be sustained at elevated levels through Q3.
- A belief that there will be a shortage of low-cost cell capacity in Q2 and Q3.
- Valuation has improved, due to share weakness and higher estimates.
“We acknowledge that this upgrade is going against the grain in terms of recent trading in solar shares, but we think the weakness implies that at least a portion of the recent adverse Euro trend is now reflected in the shares,” he writes.
For Q1, he sees revenue of $270 million and profits of 17 cents a share.
JASO in early trading is up 33 cents, or 5.7%, to $6.14.
No comments:
Post a Comment