North Coast Solar Stocks

May 20, 2009

JA Solar shares soar after upgraded to ‘Buy’

Filed under: JASO — Tags: , , , , — Jason @ 2:00 pm

Analyst upgrades JA Solar on improved price and demand expectations, shares rise 23 percent

Wednesday May 20, 2009, 2:00 pm EDT

NEW YORK (AP) — Shares of JA Solar (JASO) jumped Wednesday afternoon after an analyst upgraded the company on stabilizing prices and expectations for higher shipments.

Shares of the China-based solar parts maker climbed 74 cents, or 23.2 percent, to $3.93 in afternoon trading.

On Tuesday, JA Solar posted a loss of 193.3 million yuan ($28.3 million, or 18 cents per share), compared with a profit of 154.5 million yuan a year earlier.

Analysts polled by Thomson Reuters expected, on average, a loss of 5 cents per share on revenue of $107.9 million.

Despite the company’s dismal first-quarter results, Broadpoint analyst John Hardy upgraded the company’s stock to “Buy” from “Neutral” on expectations that demand hit a bottom in the first quarter but will likely rebound going forward.

“Pricing has begun to stabilize in May and shipments are expected to double sequentially in the second quarter,” Hardy said, adding that margins are on a path to improve throughout the year.

Analysts predicted a full-year profit of 17 cents per share.

Hardy raised his price target to $5 from $4.

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