Goldman Sachs cuts JinkoSolar stock target to $26 on mixed results
JKS
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On Thursday, Goldman Sachs adjusted its outlook on JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS), lowering the price target to $26.00 from the previous $30.00, while maintaining a Sell rating on the stock.
The revision follows JinkoSolar’s mixed fourth-quarter results for 2023, which saw the company’s revenue surpass estimates, but with reported gross margins and earnings per American depositary share (EPADS) falling short of both Goldman Sachs’ expectations and the consensus.
JinkoSolar’s management has forecasted a decrease in average selling prices (ASPs) and a slight decline in gross margins for the first quarter of 2024, attributing these changes to an oversupply situation in China.
Despite these challenges, the company is expecting an increase in shipments throughout 2024. However, JinkoSolar’s profitability is projected to be closely tied to the progression of ASPs.
In terms of demand, JinkoSolar anticipates growth in both distributed generation (DG) and utility-scale markets in 2024, with healthy demand across all regions. Nevertheless, the DG market is currently facing difficulties in the US and EU. As a result, the company has provided guidance suggesting a more subdued performance in the first half of 2024, with a significant increase in activity anticipated for the second half of the year.
Goldman Sachs’ stance on the stock reflects these mixed signals and the expectation that JinkoSolar’s financial performance will be significantly influenced by the future trajectory of ASPs and market demand.
