UPDATE: Credit Suisse Reinstates Neutral, $2 PT on JA Solar Holdings

Credit Suisse reinstates its coverage on JA Solar Holdings

with a Neutral rating and price target of $2 on strong shipments and weak margins. Credit Suisse says, "We are reinstating coverage on JASO with a neutral rating and $2 PT, representing ~0.5x P/tBV, adjusted for net cash. JASO's strong shipments and weak margins in 4Q11 resembled the results of many other solar manufacturers. The strong shipments of 398MW, in line with the positive pre-announcement of 390-410MW, above previous guidance of 310-330MW, allowed an inventory burn, positive cash flow of $87mm and free cash flow of $38mm. A gradual mix shift toward module shipments and a small level of systems development from cell shipments will help margins slightly." JASO closed at $1.78 a share yesterday.