Chinese solar stocks facing multiple headwinds, says Axiom Axiom believes that there are "outsized risks" to the margins and consensus estimates of Trina Solar (TSL), Yingli Green Energy (YGE), and JA Solar (JASO). The firm says that the companies are facing higher raw material prices, lower cell and module prices, adverse tariff decisions in the U.S., and reduced solar subsidies in multiple countries. In conjunction with this note the firm downgraded its rating on JA Solar to Hold from Buy. It kept Sell ratings on Trina Solar and Yingli Green Energy.
JA Solar downgraded to Hold from Buy at Axiom Axiom downgraded JA Solar to Hold due to significant ASP pressures and margin pressures as China's 2014 solar investment plans are below target and Japan Price target lowered to $9 from $16.