Axiom Capital Research reiterated its Sell rating on JA Solar JASO and reduced its price target from $0.43 to $0.40.
Axiom Capital Research noted, "We were surprised to learn during JASO's conference call on 08/29/12 that the company had signed an agreement to acquire Hebei Ningjin Songgong Semiconductor Limited (NSSL), an ingot/wafer company, which was previously owned and controlled by JASO's Executive Chairmen, Mr. Baofang Jin. While JASO didn't disclose the details around the company, when considering wafer prices have eroded to ~$0.24/W recently according to EnergyTrend, it appears that NSSL is a money-losing company and will become an earnings drag for JASO following the close of the acquisition."
JA Solar closed at $0.81 on Wednesday.
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