Collins Stewart Maintains Neutral on JA Solar

Collins Stewart is out with its report today on JA Solar JASO, maintaining Neutral. In a note to clients, Collins Stewart writes, "We rate JASO at Neutral with a price target of $4.50 based on 5x P/E applied to our CY12 EPS forecast of $0.90. The level of competition in the highly commoditized solar cell market has become extreme due to oversupply and lackluster demand. We favor low-cost, branded module vendors for investors looking for exposure to the solar module market. JASO has a rapidly growing module operation, which we believe may be the company's primary source of value creation in the year ahead." At the time of posting, shares of JASO were trading pre-market at $4.58, down 2.14% from Monday's close.