Jinko Solar Holding (JKS)

[eFinanceMarkets]

$JKS Jinko Solar rises despite downgrade, propped up by JA Solar's strong Q2

Jinko Solar (JKS +0.5%) is higher even after Credit Suisse downgrades shares to Neutral from Outperform, as JA Solar's (JASO +0.8%) better than expected Q2 results may be helping to support the shares.

JKS likely will be hurt by an oversupply of solar energy products in 2018 and beyond, and the stock does not yet reflect this headwind, Credit Suisse says, adding that investors have become "too exuberant" about increased demand for the company's products.

Even so, the firm raises its earnings estimates for JKS above consensus estimates, forecasting 2017 and 2018 EPS at $2.30 and $3.56, respectively, vs. consensus outlooks of $1.51 and $2.75, citing increased demand for JKS's higher cost, more efficient products.

JASO remains in the green following its Q2 report but has pared early gains, as excitement may be tempered by comments from CEO Baofang Jin, who said the company remains cautious entering H2, "given the slowdown in demand in our domestic market, coupled with the uncertainty around the Section 201 trade case in the U.S."