Wednesday, January 12, 2011

JinkoSolar Holding (NYSE:JKS) Attractive at Current Prices Says Auriga

Believing JinkoSolar Holding (NYSE:JKS) shares are being unfairly punished, Auriga says they see them handily beating consensus in the short-term, which should result in an increase in EPS estimates in the near future.

Auriga said, "The stock now trades at just 4.2x our newly introduced 2012 estimates. Given Jinko's limited track record, coupled with the investor perception of being a second-tier module supplier, we believe shares of Jinko are being unfairly punished versus a bearish industry attitude. Recent checks suggest near-term results should be well above constrained consensus estimates, leading to further increases to consensus EPS estimates through the remainder of 2011.

"...However, despite the declining gross margin profile, and our more conservative average ASP assumptions of $1.53/w in 2011 and $1.34/w in 2012, our annual EPS estimates continue to increase. We also note that current 2012 consensus of $5.55 roughly agrees with our view of earnings in 2012. We find the shares extremely attractive at current prices."

Auriga maintains a "Buy" rating on JinkoSolar Holding Co., Ltd., which closed Tuesday at $25.94, gaining $0.37, or 1.45 percent. Auriga raised their price target on them from $40 to $45.

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