Justification For Significant Downgrade
The double-downgrade is especially significant against the backdrop of an industry the firm views as attractive.
A preview of the first quarter of 2017 shows over 52-percent downside to consensus on net profit, due to lower average selling price and lower margin, according to Morgan Stanley analyst Sheng Zhong.
“We believe the next 1–1.5 years will be even tougher, with extensive new capacity rolling out for the purposes of upgrading technology and lowering production costs, while the demand is gloomy from the uncertainties of polices worldwide,” said Zhong in an analyst note last week.
JinkoSolar shares saw some major price action following the announcement of a strategic meeting with Saudi Electricity Company on May 18; however, shares have since retreated as analysts expect profitability to decrease significantly in fiscal year 2017.
Morgan Stanley has lowered its price target to $16.40 from $19.40.
Joel Elconin contributed to this report.
JinkoSolar Clouded By Double Downgrade By Morgan Stanley
JinkoSolar Attends IEC's TC82 2017 Plenary Meetings and Chairs WG8 Meeting
Latest Ratings for JKS
|May 2017||Morgan Stanley||Downgrades||Overweight||Underweight|
|Nov 2016||Credit Suisse||Assumes||Outperform|
|Nov 2016||Craig-Hallum||Initiates Coverage On||Buy|
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