Jefferies Increases Price Target on JA Solar (JASO)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on JA Solar JASO; it has a $14.00 price target on the stock, up from $10.00. The Jefferies analysts are adjusting their estimates higher after meeting with company management, the company's customers, and its competitors. As the leading capacity-constrained cell producer they believe JASO will have better than previously expected ASPs through 2011 translating to higher EPS for 2011. The analysts noted that, given robust demand for cells and white label modules, they anticipate JASO may incrementally expand its capacity to 2GW entering 2011 and anticipate further capacity expansion to 2.5-3GW may occur, resulting in 2011 shipments significantly above thier 1.75GW estimate for 2011.