Greenbridge Downgrades SORL Auto Parts To Neutral, Shares Have Risen ~100% Following Q2 Results

Greenridge Global downgraded shares of Sorl Auto Parts, Inc. SORL to Hold from Buy, citing valuation, and recommended profit taking by investors who held the stock prior to the recent price appreciation, as it hit the firm's price target of $4.50.

Analyst William Gregozeski noted that the company's stock has appreciated about 100 percent on much higher than normal volumes since reporting its Q2 results. The spike is baffling for the analyst, as there has been no news. The analyst also indicated the rise is far more than the prices increases of stocks of comparable U.S. and Hong Kong-listed companies.

Pointing out that the reiterated guidance following the second quarter was too low, the firm said it expects the company to issue a higher guidance for the year. However, the firm said it has already taken into account the potential upside.

At time of writing, the shares of Sorl were down 11.57 percent at $3.82.