ThinkEquity analyst Colin Rusch this morning upped his rating on JA Solar (JASO) to Buy from Hold. He also raised EPS estimates.
For 2010, he now EPS of 85 cents, up from 60 cents; for 2011, he goes to 96 cents, from 61 cents. His revenue forecasts increase to $1.29 billion from $1.05 billion for this year, and to $1.31 billion from $1.11 billion for next year.
Rusch says the upgrade reflects a number of factors:
- His view that Germany will not implement a cap on solar installations.
- Rising estimates for 2010 and 2011 global demand.
- Strong pricing.
- A shortage of high quality, high efficiency solar cells.
Rusch says it is his clear to him that production and sales at JASO are well ahead of guidance.
JASO today nonetheless is down 5 cents, at $5.80.
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