Canadian Solar (CSIQ) shares received a modest boost this morning from Auriga USA analyst Mark Bachman, who raised his rating on the stock to Buy from Hold, with a new price target of $21, down from $25.
“Following the negative pre-anouncement from April 20, we believe the negative catalyst has passed and investors have reduced their expectations accordingly,” he writes. “The gross margin decline was worse than expected, and when combined with the charge to other income for inadequately hedging exposure to the Euro, we believe management has set a low enough bar for Q1 earnings.”
Meanwhile, Wells Fargo analyst Sam Dubinsky launched coverage of CSIQ with a Market Perform rating. He contends that the company “face challenges” in the first half, including exchange rate headwinds and firmer input prices pressuring margins. He says the company is having to choose between market share and profits. He puts the company’s valuation at $18-$23 a share.
CSIQ is up 22 cents, or 1.3%, to $17.06.
No comments:
Post a Comment