JinkoSolar (JKS) Falls as Analyst Doesn't See 'Take Private' Move

JinkoSolar (NYSE: JKS) is down 3.5% in early trading Monday. In addition to general market malaise, Roth Capital analyst Philip Shen said in a report this morning that doesn't believe privatization is a real option for now.

Shen commented, "Given the trend of pursuing privatizations, JKS is currently evaluating the merits of alternative corporate structuring options, including privatization and a dual-listing in U.S. and HK. We don't believe privatization is a real option for now. The timing for an IPO of JKS Power is now toward YE'16, and management continues to pursue a US IPO option despite the higher valuations in Asia. HK remains a viable option as well, but would likely need more time. Module ASPs are currently the following in the U.S. (68-70c/W), China (53-55c/W), and Japan (56-58c/W). The Malaysia facility is ramping up production starting in July. All in, the narrative for JKS remains much the same. We could see the stock trade sideways until there is greater certainty of a spinoff. Visibility on this, however, is dependent on resolving FIT challenges in China, which do not appear imminent. We still like the company for its cost leadership, but we're in a bit of a wait and see situation."

The firm maintained a Buy rating on the stock.

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