JinkoSolar Upgraded to Strong Buy - Analyst Blog

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On Oct 8, 2013, Zacks Investment Research upgraded solar panel manufacturer JinkoSolar Holding Co., Ltd. ( JKS ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

JinkoSolar Holdings reported positive earnings surprises in three out of the last four quarters with a striking average beat of 173.17%. The long-term expected sales growth of JinkoSolar is set at an encouraging 36.22%.

The company's string of large-scale solar photovoltaic (PV) supply orders from countries like Australia, South Africa and the U.K., effective project execution skills as well as favorable renewable policy adoption by the Chinese government have elevated its position in the market.

JinkoSolar's high-quality products at lower rates have attracted customers from around the globe. In addition, the company's lofty backlog of domestic utility-scale projects along with a steady rebound in solar panel prices is expected to boost its margin. The 50% tax break on solar panel production by the Chinese government will unlock increased growth prospects for JinkoSolar Holdings.

Furthermore, Middle East countries like Egypt and Saudi Arabia are intent on working with Chinese solar producers to augment their clean energy usage which might open a window for future business expansion.

Europe is also targeting to meet 20% of its energy demand for 2020 through the use of renewables. This fact presents an opportunity with profitable growth options for JinkoSolar.

However, the prevailing anti-dumping duties on Chinese manufacturers continue to restrict JinkoSolar Holding from increasingly tapping the lucrative U.S. markets.

Other Stocks to Consider

Besides JinkoSolar, other attractive solar PV operators are Zacks Ranked #1 (Strong Buy) ReneSola Ltd. ( SOL ), SunPower Corp. ( SPWR ) and Trina Solar Ltd ( TSL ).



JINKOSOLAR HLDG (JKS): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

SUNPOWER CORP-A (SPWR): Free Stock Analysis Report

TRINA SOLAR LTD (TSL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: JKS , SOL , SPWR , TSL

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