JA Solar Holdings initiated with "outperform" - update

03/21/07 - RBC Capital Markets

NEW YORK, March 21 (newratings.com) - Analyst Stuart Bush of RBC Capital Markets initiates coverage of JA Solar Holdings Co (JASO) with an "outperform" rating. The target price is set to $23.

In a research note published this morning, the analyst mentions that the company has an edge over its European solar cell manufacturing peers due to its manufacturing costs, which after excluding the raw material expenses are half of that incurred by the latter. JA Solar Holdings is expected to continue to maintain substantial financial leverage in the long term due to its ability to minimize breakage and maximize capacity utilization, RBC Capital Markets adds.