About two weeks ago Mark Bachman of Avian Securities sent out a research report indicating that the train wreck taking place in the solar industry appears to be almost over and that he’s backing off his negative industry view a bit.
The recommended trading strategy is to focus on the best solar stocks with an intent to sell in Q4. You could call it trading an oversold bounce. The firm notes that it’s not recommending … Read the rest
Jinko Solar (JKS) is surging nearly 10% in pre-market trading and may break out of a cup with handle base this morning after the company posted strong Q4 earnings results. The company smashed analyst estimates posted an EPS of $2.36 (vs the analyst estimate for $1.56) on revenues of $267.7 million (vs the estimate for just $228 million). Product shipments came in at a record 162.6MW exceeding previous guidance of 130 – 140MW.
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Auriga sent over a research report to us this morning, reiterating their cautiously bullish stance on China solar stocks following a 7 day trip throughout China. The firm visited both public and private companies and while positive in the near term for both shipments and pricing, there is some trepidation due to rising costs.
Commenting on earnings season, they feel that while most companies will post beat and raise quarters, some may reveal some margin … Read the rest
Earlier today I posted a summary of Auriga’s bullish outlook on solar stocks for 2011. According to Barrons, Credit Suisse has also posted their outlook for solar stocks this year, but is less bullish. They have a cautious view in the near term and a Market Weight rating on the sector.
Auriga commented on the elasticity of the solar market where demand picks up as prices fall. Credit Suisse notes that this has traditionally … Read the rest
Auriga released its 2011 report on the solar industry last night and I wanted to summarize it a bit here for my readers. Auriga continues to remain generally bullish on the sector and doesn’t buy into the weakening demand + supply glut scenario that several other analysts are predicting for 2011/2012. They predict 23% growth for 2011 and highlight the elasticity of the solar market where as prices decrease demand picks up. They cite a … Read the rest
Jinko Solar (JKS) is having quite a morning, vaulting nearly 20% to new all time highs after crushing analyst estimates this morning. The company reported a whopping $1.75/share which wasn’t even close to the analyst estimate of $0.93 and a huge increase over the year ago quarter when the company reported just .09/share. Revenues were impressive as well coming in at $215 million vs the analyst consensus estimate of $153 million (a 267% increase over … Read the rest
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 … Read the rest
The good news continues to flow from the solar space and this morning is no exception. We had the raised guidance from LDK, CSIQ reiterating its guidance and ASTI announcing an important thin film certification.
Adding fuel to the fire are upgrades out of Collins Stewart and UBS. UBS upgraded LDK Solar (LDK) following its guidance raise from Neutral to Buy and now has a $12 price target on the stock.
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Auriga is out with a research note on select stocks today and remains generally bullish on the sector. They indicate that industry fundamentals remain strong both in terms of pricing and volume. Q1 volumes are strong and sold out in some cases as pricing remains firm while the 2nd half of 2011 warrants cautious optimism rather than pessimism. Here are notes on some individual names.
Jinko Solar (JKS): Sees upside to current estimates as shipments … Read the rest
Auriga is out maintaining its Buy rating on both Solarfun (SOLF) and JinkoSolar (JKS) and has raised the price targets for both.
Price target for SOLF goes from $9 to $13. “We have increased confidence that management will expand capacity meaningfully in 2011 and are modeling 979MW of shipments versus year-end capacity of 1,250MW… Our findings appear to be corroborated by the July 19 press release where the company announced plans to increase cell capacity… Read the rest