NEW YORK (TheStreet) -- Shares of JA Solar (JASO) were climbing 5.24% to $6.93 on heavy trading volume mid-afternoon Thursday after Axiom Capital raised its rating on the stock to "buy" from "sell."

The firm also upgraded its rating on the solar energy sector two notches to "overweight" from "underweight," the Fly reports.

China's decision to lower solar subsidies as of January 1, 2018 may cause a spike in demand for solar installments in the country near-term, according to Axiom.

The firm said the higher demand will boost the prices of different types of solar equipment, the Fly noted. As a result, the margins and multiples of many solar companies will rise, Axiom added.

JA Solar is a Shanghai-based company that develops, manufactures and sells solar power products.

More than 1.22 million of the company's shares changed hands so far today vs. its average 30-day volume of 569,581 shares.

Axiom also raised its stock ratings on Yingli Green Energy (YGE) and Trina Solar (TSL) to "buy" from "sell," while SolarCity (SCTY) stock was upgraded to "hold" from "sell."

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on JA Solar stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and reasonable valuation levels.

But the team also finds weaknesses including poor profit margins, generally higher debt management risk and a generally disappointing performance in the stock itself.

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