North Coast Solar Stocks

November 11, 2009

JA Solar: RBC Turns Cautious; Worries On 2010 Outlook

Filed under: JASO — Tags: , , , , , — Jason @ 12:08 pm

By Eric Savitz

RBC Capital analyst Stuart Bush this morning cut his rating on JA Solar (JASO) to Perform from Outperform, while keeping his price target at $4. The stock closed yesterday at $4.15. The rating change follows Tuesday’s better-than-expected Q3 earnings report.

Bush writes that the strong Q3 is likely to be followed by another good report in the fourth quarter, due to “strong seasonality in solar demand from Germany” ahead of a 2010 feed-in-tariff reduction. But he adds that the company’s prospects for 2010 “remain highly uncertain, as German, U.S. and Chinese solar subsidy programs are set to be determined or changed,” leading to further ASP declines and over-supply issues.

Bush trimmed his 2010 EPS estimate for the company to a loss of a penny a share, from a profit of 25 cents.

JASO today is down 26 cents, or 6.3%, to $3.89.


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