As Zacks senior alternative energy analyst Jon Kolb notes today in his upgrade of JA Solar (JASO) shares from a Hold to a Buy, the Chinese solar panel manufacturer is one of the fastest-growing stocks in the alt-energy space:
'JASO's significant upswing following its February 2007 IPO remains a compelling growth story in clean energy. The growth potential for the solar industry as a whole is very promising. Capacity expansions and committed supply of key raw materials at JA Solar will continue to fuel growth.
'Strong earnings growth, coupled with a well-diversified customer base, makes JASO one of the fastest-growing alternative energy stocks. Material cost savings through the company's long-term supply agreement will also boost margins. Accordingly, we upgrade our recommendation on JASO to BUY with a six-month target price of $63.00, representing annualized total return potential of
41.3%.
'Looking ahead, successful execution in the high-growth potential solar panel market warrants premium multiples to the broader market and JASO is well-positioned to take advantage of this opportunity. The company still trades at a significant discount to the average industry multiple and many of its peers. With strong projected year-over-year earnings projections throughout 2008, this discount represents an opportunity for the share price to appreciate significantly with forward P/E multiple expansions.'
Read the full analyst report on JASO.
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