JA Solar (JASO) Upside Already Priced In, Needham & Company
Needham & Company analyst Y. Edwin Mok is sticking with a Hold rating on JA Solar Holdings Co., Ltd. (NASDAQ: JASO) despite "very strong" fourth quarter results this morning.
Mok said, "JASO reported very strong 4Q13 results and provided substantially higher 2014 guidance, which we believe are ahead of heightened buy-side expectations going into the report. JASO's ability to grow shipments 33% QoQ and return to profitability with stronger margins clearly confirm its strengths in solar modules production and market penetration. While we are modeling for the company to remain profitable as business conditions improve, with the stock trading at 12X our 2015E EPS, we believe the increased sales and profitability are already discounted in the share price."