Auriga Maintains a 'Buy' on JA Solar Holdings (JASO); Opex Surprise
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Price: $7.49 --0%
Rating Summary:
5 Buy, 5 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Rating Summary:
5 Buy, 5 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
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Auriga maintains a 'Buy' on JA Solar Holdings Co., Ltd. (NASDAQ: JASO), PT $8.
Auriga analyst says, "We maintain our $8 target for shares of JASO after better than expected costs more than offset lower sales. We are skeptical this level of opex is sustainable but there is no denying some form of improvement has occurred, leading us to increase near-term estimates on lower expenditures. While we prefer to wait for further evidence of opex improvement before matching management's target, we note there is likely more upside here than down. Near term unit and price guidance were horrible as expected, but with JASO the second company in as many days saying orders are already improving after the resolution of Italian incentives, we see unit and price upside through the remainder of the year. JASO currently trades 1x 1Q11 tangible book, a likely floor for the stock, and in our view leading risk/reward skewed in JASO's favor at this price level. Our 2011 EPS estimate increases to $1.43 from $0.99 on better cost and 2H11 mix shift back toward cell tolling. Our $8 target is 8x our 2012 EPS estimate of $1.06, up slightly from our prior 2012 EPS estimate of $1.01."
For more ratings news on JA Solar Holdings Co., Ltd. click here and for the rating history of JA Solar Holdings Co., Ltd. click here.
Shares of JA Solar Holdings Co., Ltd. closed at $6.48 yesterday.
Auriga analyst says, "We maintain our $8 target for shares of JASO after better than expected costs more than offset lower sales. We are skeptical this level of opex is sustainable but there is no denying some form of improvement has occurred, leading us to increase near-term estimates on lower expenditures. While we prefer to wait for further evidence of opex improvement before matching management's target, we note there is likely more upside here than down. Near term unit and price guidance were horrible as expected, but with JASO the second company in as many days saying orders are already improving after the resolution of Italian incentives, we see unit and price upside through the remainder of the year. JASO currently trades 1x 1Q11 tangible book, a likely floor for the stock, and in our view leading risk/reward skewed in JASO's favor at this price level. Our 2011 EPS estimate increases to $1.43 from $0.99 on better cost and 2H11 mix shift back toward cell tolling. Our $8 target is 8x our 2012 EPS estimate of $1.06, up slightly from our prior 2012 EPS estimate of $1.01."
For more ratings news on JA Solar Holdings Co., Ltd. click here and for the rating history of JA Solar Holdings Co., Ltd. click here.
Shares of JA Solar Holdings Co., Ltd. closed at $6.48 yesterday.
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