Collins Stewart Cuts Price Targets on JinkoSolar Holding (JKS), Sees Profitability in Fiscal 2013
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Price: $16.46 -0.96%
Rating Summary:
11 Buy, 9 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
Rating Summary:
11 Buy, 9 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
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Collins Stewart is reaffirming its Hold rating on shares of JinkoSolar Holding Co. (NYSE: JKS) while reducing its price target from $8 to $6.
Management at JKS released reduced shipment and revenue guidance for the third quarter. For the quarter, revenues and now expected to by $270-$280 million on 210-220 MW in shipments, down from the company's previous guidance of $310-$330 million on 230-250 MW in shipments.
The firm believes that JKS will be able to offer lower module prices than its key peers at this time as a result of its second-tier brand and the excess supply.
As a result of management's new Q3 guidance, the firm has cut its revenue and EPS estimates from $310 million and $0.30 to $274 million and $0.09. Collins Stewart's new estimates are based on shipment volumes of 215 MW, down from its prior estimate of 240 MW.
To go inline with current market trends and management's new outlook, the firm is lowering its fiscal 2011 and 2012 EPS estimates from $3.52 and $0.08 to $3.21 and ($0.06). Collins Stewart also cut its revenue estimates for the two fiscal years from $1.25 billion and $1.19 billion to $1.15 billion and $1.01 billion.
An analyst at Collins Stewart comments, "With losses expected until Q3 2012 it is difficult to value JKS in this downturn. We believe the company will return to profitability in CY13 and earn greater than $0.60 per share that year."
For an analyst ratings summary and ratings history on JinkoSolar Holding Co., Ltd. click here. For more ratings news on JinkoSolar Holding Co., Ltd. click here.
Shares of JinkoSolar Holding Co., Ltd. closed at $6.75 yesterday.
Management at JKS released reduced shipment and revenue guidance for the third quarter. For the quarter, revenues and now expected to by $270-$280 million on 210-220 MW in shipments, down from the company's previous guidance of $310-$330 million on 230-250 MW in shipments.
The firm believes that JKS will be able to offer lower module prices than its key peers at this time as a result of its second-tier brand and the excess supply.
As a result of management's new Q3 guidance, the firm has cut its revenue and EPS estimates from $310 million and $0.30 to $274 million and $0.09. Collins Stewart's new estimates are based on shipment volumes of 215 MW, down from its prior estimate of 240 MW.
To go inline with current market trends and management's new outlook, the firm is lowering its fiscal 2011 and 2012 EPS estimates from $3.52 and $0.08 to $3.21 and ($0.06). Collins Stewart also cut its revenue estimates for the two fiscal years from $1.25 billion and $1.19 billion to $1.15 billion and $1.01 billion.
An analyst at Collins Stewart comments, "With losses expected until Q3 2012 it is difficult to value JKS in this downturn. We believe the company will return to profitability in CY13 and earn greater than $0.60 per share that year."
For an analyst ratings summary and ratings history on JinkoSolar Holding Co., Ltd. click here. For more ratings news on JinkoSolar Holding Co., Ltd. click here.
Shares of JinkoSolar Holding Co., Ltd. closed at $6.75 yesterday.
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