Wells Fargo Upgrades JA Solar Holdings Co., Ltd. (JASO) to Market Perform; Tough Times, But Bankruptcy Unlikely

Wells Fargo upgraded JA Solar Holdings Co., Ltd. (NASDAQ: JASO) from Underperform to Market Perform with a price target range $1.10-$1.60.

Wells analyst says, "While there is lack of earnings power through 2012, we believe JA Solar should survive the downturn due to a manageable balance sheet ($520MM in cash, $850MM in debt of which only $56MM is short term). In addition, we expect capex reductions and improved working capital management to help minimize cash burn through 2012. Shares which trade at an 0.6x EV/sales multiple (an appropriate multiple for a distressed company in our view), are down 77% YTD (vs. the broader market down about 5%), and have already fallen beneath our prior $1.80-2.00 valuation range."

Wells lowers 2011E/2012E EPS to -$0.31/-$0.82 (prior $0.23/$0.24),

For an analyst ratings summary and ratings history on JA Solar Holdings Co., Ltd. click here. For more ratings news on JA Solar Holdings Co., Ltd. click here.

Shares of JA Solar Holdings Co., Ltd. closed at $1.60 yesterday.

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