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Sungrow Power's Valuation Looks Demanding to Daiwa -- Market Talk

Dow Jones Newswires ·  2021/10/28 22:00

0158 GMT - Sungrow Power Supply's current valuation looks demanding to Daiwa Capital, which downgrades the stock to hold from outperform. Shares of the solar inverter manufacturer have surged 137% in the year to date, above the 22%-115% recorded by its peers, Daiwa notes. With weaker demand potentially pressuring 4Q sales, companies with demanding valuations could face some profit-taking if full-year earnings turn out to be weaker than expected. The Japanese bank lowers its forecast for Sungrow's 2021 earnings by 3%. Daiwa raises the stock's target price to CNY179.50 from CNY175.00 after adjusting its price/earnings-to-growth estimates. Shares slide 7.5% to CNY158.16. (justina.lee@wsj.com)

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