UPDATE: Credit Suisse Upgrades JinkoSolar Following Recent Policy Developments in China

In a report published Thursday, Credit Suisse analyst Brandon Heiken upgraded the rating on

from Neutral to Outperform, and raised the price target from $22.00 to $32.00. In the report, Credit Suisse noted, “We are upgrading JKS based on the recent policy developments in China that will help project development and more conviction on stable pricing through 2014...JinkoSolar has guided 200-300MW of project shipments in 2013, implying an incremental value of $220-330m if the company retains the projects. We estimate that shifting module allocation from module sales to project sales can generate about 40c in 2014 EPS for each 100MW. We are increasing our 2014 EPS from $2.71 to $3.58 due to more stability in pricing. Our TP of $32 includes $1.05b from 1x EV to replacement value of capacity and $200m in incremental value from 2013 projects that may be kept on the balance sheet. Next year, JinkoSolar may build a similar level of projects, contributing additional retained value and/or project sales.” JinkoSolar Holding Co. closed on Wednesday at $23.29.