Lazard’s Alternative Energy Calls (CSIQ, LDK, JASO)

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Between late yesterday and early today, Lazard Capital Markets’ Sanjay Shrestha has keyed on many of his alternative energy picks after earnings or other news.  Among the calls are Canadian Solar, Inc. (NASDAQ: CSIQ), LDK Solar Co. Ltd. (NYSE: LDK), and JA Solar Holdings Co. Ltd. (NASDAQ: JASO).  Below are the notes for each call:

  • Canadian Solar, Inc. (NASDAQ: CSIQ) shares are up 31% to $44.85 after the company just trounced the earnings estimates.  Shrestha at Lazard maintained his buy rating.  But he raised estimates for 2008 EPS estimate to $2.15 from $1.30 and 2009 estimate to $3.40 from $1.60 to reflect the companies continued traction and capacity ramp.  His price target is now $50.00 from $24.00, reflecting a 15-times 2009 EPS.
  • LDK Solar Co. Ltd. (NYSE: LDK) was maintained as a HOLD rating, despite the company posting higher numbers than Shrestha’s estimates.  The HOLD rating reflects his view that LDK is fairly valued at current levels on the 2009 EPS estimate from Lazard of $2.20 versus consensus of $3.72.  LDK shares are down almost 3% at $36.40.
  • JA Solar Holdings Co. Ltd. (NASDAQ: JASO) has also been maintained as a BUY rating, and Shrestha noted that the $300 million convertible note offering will allow the company to ramp production faster.  Shrestha raised the MW guidance to 345 from 300 for this year, and therefor raised his estimates on earnings and revenues as well.  JA Solar’s $32.00 target is based upon a rough 20-times earnings for 2009.  JA Solar’s stock is up over 6% at $23.55 today.

Jon C. Ogg
May 12, 2008