’Reddit is built for this moment’ - Stock soars on crushed earnings
On Thursday, UBS analyst Jon Windham revised the price target for JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS) shares, reducing it to $22.00 from the previous $25.00, while keeping a Neutral rating on the stock. The adjustment comes in response to JinkoSolar’s fourth-quarter 2024 results and the 2025 guidance, which fell short of expectations. The shortfall was largely attributed to the impact of an oversupply in global solar module capacity, which has put pressure on average selling prices (ASP). According to InvestingPro data, JKS shares have declined over 17% year-to-date, currently trading at $20.25, with analysts’ targets ranging from $18 to $66.10.
The UBS analyst noted that due to the results and forward-looking guidance, there has been a need to adjust the expected shipment volumes for the coming years. The revised estimates are now set at 92GW for 2025, 111GW for 2026, and 127GW for 2027. These figures represent a decrease from the previous projections of 116GW, 127GW, and 139GW, respectively. The company’s revenue declined by 9.85% in the last twelve months, with gross profit margins at 12.79%.
Windham’s report highlighted concerns about JinkoSolar’s profitability, suggesting that it has not yet reached its lowest point. The company is perceived as being more vulnerable to global ASP pressure compared to its peers. Additionally, the evolving U.S. trade policy is seen as a potential risk factor that could affect the company’s performance. Despite these challenges, InvestingPro analysis indicates the stock is trading below its Fair Value, with a notable dividend yield of 14.42% and an overall Financial Health score rated as "GOOD."
Despite the lowered price target, UBS has decided to maintain a Neutral rating on JinkoSolar stock. This stance indicates that while there are challenges ahead for the company, the current valuation does not warrant a change in the investment rating at this time.
Investors in JinkoSolar Holding Co., Ltd. will likely continue to monitor the company’s performance closely, especially in relation to global market pressures and policy changes that could influence the solar industry and JinkoSolar’s position within it.
In other recent news, JinkoSolar Holding Co. reported a challenging fourth quarter of 2024, with a significant revenue drop to $2.83 billion, marking a 37% decrease year-over-year. The company’s earnings per share (EPS) came in at -$9.22, missing the forecasted -$3.96, and gross margins fell sharply to 3.6% from 15.7% in the previous quarter. Jefferies analyst Johnson Wan revised the price target for JinkoSolar to $62.01 from $65.43, while maintaining a Buy rating, reflecting the company’s financial performance and future operational plans. Despite the financial setbacks, JinkoSolar maintained its position as a leading global solar module manufacturer, with annual module shipments increasing by 18.3% year-over-year to 92.87 gigawatts. The company plans to reduce its capital expenditures significantly in 2025, focusing on upgrading existing technology rather than expanding production capacity. JinkoSolar’s management reaffirmed its commitment to a share repurchase program, with $120 million already allocated at the U.S. level, set to initiate after the first quarter of 2025 earnings release. The company is also exploring alternative supply chains to mitigate potential impacts from U.S. import tariffs, while maintaining optimism about future efficiency improvements and market position.
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