Auriga is out this morning upgrading Jinko Solar (JKS) back to a Buy rating and raising the price target from $32 to $37 after the company announced last night a follow on offering of $2 million shares in order to raise cash for a big expansion.  While equity offerings typically hit a stock price in the short term due to dilution, Auriga indicates the offering was less than anticipated and sees the move as bullish in the longer term because it gives the company the cash needed to ramp capacity to 1GW by the end of next year.  Auriga doesn’t see the need for another equity offering and is raising its shipments estimate for 2011 from 550MW to 661MW.

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Shares of JKS are trading up a few percent today and holding in around key support of the 50 day moving average.  In my opinion, the stock needs to digest the big run up this year a bit longer, but a breakout once the digestion period is complete would provide an entry signal.