JA Solar Strongly Positioned

Tags: jaso
14 Jan 3:57am
Posted by ZacksResearch
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JA Solar Holdings Co., Ltd. (JASO) is well positioned to successfully become a global leader in the development and manufacturing of solar cells. Going forward, improving production costs, coupled with ongoing capacity expansions, and committed supply of key raw materials, will continue to boost the growth story.

However, rising silicon wafer costs, tepid module demand in Europe, after-shocks of Lehman bankruptcy and the company's high R&D expenses may affect ASPs over the near-term. Faced with adverse macro conditions the company reduced its revenue guidance for fiscal 2008 and fiscal 2009. Accordingly, we maintain our BUY recommendation on JASO with a six-month target price of $5.50. Price appreciation to our near-term valuation target represents 18%% upside potential.

JASO trades at P/E multiples of only 9.5x and 11.9x our current-year 2008 and forward-year 2009, earnings per share estimate, respectively, or at the lower-end of the range of the alternative energy industry and the average industry multiple and many of its peers.

Read the full analyst report on JASO




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