Canaccord Genuity Cuts Price Target on Canadian Solar (CSIQ) Following 18c EPS Beat

Canaccord Genuity maintained a Buy rating on Canadian Solar (NASDAQ: CSIQ), and cut the price target to $40.00 (from $45.00), following the company's 2Q15 earnings report. Revenues in Q2 were $636.7M, higher consensus of $593M. EPS was $0.31 compared to consensus estimate of $0.13. Management provided revenue guidance in a range of $570M to $620M. Analyst Jed Dorsheimer continues to believe that quarterly earnings should have minimal impact on CSIQ shares until investors have ample details on the potential YieldCo.

Dorsheimer commented, "We continue to believe that Canadian Solar's module business will experience a tightening supply/demand during this bullish end-of-year adoption cycle, which should benefit CSIQ's core operations. Although recent YieldCo and solar volatility have had dramatic valuation impacts, we believe the fundamental PV growth story is still intact. The company remains tight-lipped on YieldCo news, but mentioned it looks to make its confidential SEC filing "very soon" and still targets the end of the year or beginning of next year. We maintain our BUY rating, but reduce our price target to $40."

For an analyst ratings summary and ratings history on Canadian Solar click here. For more ratings news on Canadian Solar click here.

Shares of Canadian Solar closed at $24.69 yesterday.

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