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JKS

JinkoSolar

$24.27

0.57 (2.41%)

, CSIQ

Canadian Solar

$14.99

-1.64 (-9.86%)

11:03
08/22/17
08/22
11:03
08/22/17
11:03

Chinese solar stocks rebound despite Jinko downgrade, JA Solar 'caution'

Credit Suisse downgraded Chinese solar energy company JinkoSolar (JKS) to Neutral from Outperform, but that company and others in the sector are advancing after another name in the space, JA Solar (JASO), reported much better than expected results. DOWNGRADE: JinkoSolar is likely to be hurt by an oversupply of solar energy products in 2018 and beyond, and the stock does not yet reflect this headwind, wrote Credit Suisse analyst Maheep Mandloi. Moreover, investors have become "too exuberant" about increased demand for the company's products, the analyst stated. However, Mandloi increased the firm's earnings per share estimates for the company significantly above consensus estimates. The analyst predicts that JinkoSolar's 2017 and 2018 EPS will come in at $2.30 and $3.56, respectively, versus the consensus outlooks of $1.51 and $2.75. The analyst cited increased demand for the company's higher cost, more efficient products as the key reason for the increase in the estimates. Mandloi raised the price target on the shares to $25 from $20. RESULTS: JA Solar reported second quarter earnings per share of 42c, versus two analysts' average estimate of 3c. The company's revenue came in at $878M ,versus the analysts' average estimate of $602.5M. JA Solar said its results were boosted by strong sales in China, which were primarily brought about by "accelerated activity ahead of subsidy reductions." The company reported that shipments of its products to its customers surged 88% year-over-year last quarter. However, JA Solar CEO Baofang Jin said the company remains "cautious on our business outlook as we enter the second half of 2017, given the slowdown in demand in our domestic market, coupled with the uncertainty around the Section 201 trade case in the U.S." PRICE ACTION: In morning trading while JinkoSolar rose 2% to $24.15, while JA Solar advanced 3% to $6.38. Canadian Solar (CSIQ), which also has a large China business, climbed about 1% to $15.12 per share.

JKS

JinkoSolar

$24.27

0.57 (2.41%)

CSIQ

Canadian Solar

$14.99

-1.64 (-9.86%)

JASO

JA Solar

$6.19

-0.03 (-0.48%)

  • 22

    Aug

JKS JinkoSolar
$24.27

0.57 (2.41%)

08/22/17
FBCO
08/22/17
DOWNGRADE
Target $25
FBCO
Neutral
JinkoSolar downgraded to Neutral from Outperform at Credit Suisse
Credit Suisse analyst Maheep Mandloi downgraded JinkoSolar to Neutral and raised his price target to $25 from $20 saying current valuation does not reflect oversupply in 2018+. The analyst raised Jinko estimates well above consensus as demand improves and higher efficiency products but said investors are too "exuberant" on demand growth.
08/15/17
COKE
08/15/17
NO CHANGE
COKE
Sell
Coker Palmer calls JinkoSolar's capital market activity 'egregious'
JinkoSolar's (JKS) $200M mixed securities shelf filing this morning it its third secondary since the initial public offering, Coker Palmer writes in a research note. The company's capital market activity and spending are "egregious" and not helping the industry return to a more rationale pricing environment, the firm contends. Coker believes JinkoSolar is unlikely to generate any free cash flow in 2017/2018. It continues to recommend being long Canadian Solar (CSIQ) and short Jinko.
05/26/17
05/26/17
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Ulta Beauty (ULTA) downgraded to Neutral on balanced risk/reward at Buckingham with the firm citing more balanced risk/reward at current levels and raised its price target to $330 from $325. 2. JinkoSolar (JKS) was downgraded to Sell from Neutral at Citi and to Underweight from Overweight at Morgan Stanley. 3. Signet Jewelers (SIG) downgraded to Neutral from Buy at CL King with the firm citing lack of catalysts. 4. TripAdvisor (TRIP) downgraded to Underperform from Neutral at Macquarie with analyst Matthew Brooks saying the "best days" may be over for TripAdvisor and believes Google (GOOGL) is at the "top of the travel funnel." 5. Shire (SHPG) downgraded to Market Perform from Outperform at Bernstein with analyst Aaron Gal saying he believes risks to longer term earnings from competition and slowing Vyvanse sales are not being factored into consensus estimates. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
05/26/17
05/26/17
DOWNGRADE
Target $16.4

Underweight
JinkoSolar downgraded two notches to Underweight at Morgan Stanley
As previously reported, Morgan Stanley downgraded JinkoSolar two notches to Underweight from Overweight and lowered its price target to $16.40 from $19.40. Analyst Sheng Zhong expects Q1 earnings to decline over 50% below Street estimates mainly due to lower margins and ASPs, and slow cost reductions given high polysilicon prices and OEM fees. The analyst also notes increased new capacity coming online and believes a majority of manufacturers will have difficulty reaching breakeven in 2H 2017 and 2018.
CSIQ Canadian Solar
$14.99

-1.64 (-9.86%)

04/18/17
OTRG
04/18/17
NO CHANGE
OTRG
Solar PV Manufacturers downgraded to Negative from Mixed at OTR Global
OTR Global view on crystalline PV producers in the solar integrator market was downgraded to Negative from Mixed following checks that indicate global crystalline PV prices fell in Q1 and inventories increased. Further 2017 Chinese installations are expected at 27-28GW, below 34.21 GW in 2016.
08/21/17
08/21/17
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Nike (NKE) downgraded to Hold from Buy at Jefferies, with analyst Randal Konik saying valuation is expensive and the competitive landscape could make share gains and margin expansion difficult. Konik added Adidas' (ADDYY) success in reviving its brand appeal in North America has had a clear impact on Nike shares. 2. Foot Locker (FL) downgraded to Neutral from Buy at UBS and Finish Line (FINL) cut to Sell from Neutral by analyst Michael Binetti, who said Foot Locker's results were worse than the analyst expected and make it tougher to support a thesis that athletic retail will be able to sidestep the structural challenges of the broader sector. Binetti downgraded Finish Line based on the structural risks exposed by Foot Locker exposed in its Q2 report. 3. Barclays analyst Lydia Rainforth downgraded Total (TOT) and Repsol (REPYY) to Equal Weight from Overweight and Statoil (STO) and Eni SpA (E) to Underweight from Equal Weight citing relative valuation. 4. Canadian Solar (CSIQ) downgraded to Underweight from Equal Weight at Barclays, with analyst Jon Windham saying it faces risks from the possible delay of project sales and pricing, soft investor demand for a J-REIT listing in the second half, and risks from the September 22 injury vote in the US ITC 201 trade case. 5. Infosys (INFY) downgraded to Neutral from Overweight at JPMorgan. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
08/21/17
LEHM
08/21/17
DOWNGRADE
Target $14
LEHM
Underweight
Canadian Solar downgraded to Underweight from Equal Weight at Barclays
Barclays analyst Jon Windham downgraded Canadian Solar to Underweight following Q2 results saying it faces risks from the possible delay of project sales and pricing, soft investor demand for a J-REIT listing in the second half, and risks from the September 22 injury vote in the US ITC 201 trade case. Windham raised Canadian Solar's price target to $14 from $12.
JASO JA Solar
$6.19

-0.03 (-0.48%)

03/24/17
JPMS
03/24/17
NO CHANGE
Target $38
JPMS
Neutral
JPMorgan cuts solar targets amid industry capacity additions
JPMorgan analyst Paul Coster lowered his estimates for First Solar (FSLR) and SunPower (SPWR) on the belief that it will take longer than expected for industry supply and demand to find balance. The analyst is "skeptical" on the timing of an industry recovery with Chinese-based competitors including Canadian Solar (CSIQ), JinkoSolar (JKS) and JA Solar (JASO) increasing module capacity. Coster lowered his price target for Neutral-rated First Solar to $38 from $41 and for Neutral-rated SunPower to $8 from $9.
07/19/17
AXIO
07/19/17
UPGRADE
Target $7
AXIO
Hold
JA Solar upgraded to Hold from Sell at Axiom
Axiom analyst Gordon L. Johnson II upgraded JA Solar to Hold from Sell stating that he believes the company will "opportunistically attack" the U.S. market as long as the bull market for solar panels is "in play". The company's standing $9.69 per share take private offer from its CEO caps the stock's upside, however, added Johnson, who raised his price target on JA Solar to $7 from $3.
11/16/16
11/16/16
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Sysco (SYY) downgraded to Neutral from Outperform at Credit Suisse with analyst Edward Kelly saying Sysco shares are up 50% over the last 18 months and now views risk/reward as balanced. 2. Teva (TEVA) downgraded to Hold from Buy at Jefferies, to Equal Weight from Overweight at Morgan Stanley, and to Neutral from Buy at BTIG. 3. Bank of America (BAC) Capital One (COF) downgraded to Neutral from Outperform at Baird while the firm downgraded Fifth Third (FITB) to Underperform from Neutral. 4. Zions Bancorp (ZION) downgraded to Equal Weight from Overweight at Morgan Stanley and to Market Perform from Outperform at Bernstein. 5. Yingli Green Energy (YGE) downgraded to Sell from Buy at Axiom while the firm downgraded SolarCity (SCTY) and JA Solar (JASO) to Sell from Hold. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

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