Jefferies Lowers Price Target on Canadian Solar (CSIQ), Margin Visibility Remains Limited
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Price: $14.55 -1.22%
Rating Summary:
13 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
13 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Hold rating on shares of Canadian Solar (NASDAQ: CSIQ) and is lowering its price target from $11 to $9 following its second quarter results.
The company reported solid second quarter results with better pricing than its peers and a ASP in the range of $1.55-$1.60/W.
For the third quarter CSIQ is forecasting gross margins in the range of 9-12 percent as ASP is estimated to be $1.40-$1.50/W for the 84WW DDU shipment recognized in the quarter. The company believes that it will experience growth in all of its regions in the third quarter.
An analyst at the firm comments, "The company estimated a 75% chance to convert the existing pipeline to shipment. Demand has been reasonable but macro uncertainty has delayed some customers. These customers could wait until September, creating more pricing uncertainty."
Jefferies slashed its FY11 and FY12 EPS estimates from $1.18 and $1.69 to $0.76 and $1.32. The tweaked its revenue estimates from $1.788 billion and $2.052 billion to $1.919 billion and $2.04 billion.
For more ratings news on Canadian Solar click here and for the rating history of Canadian Solar click here.
Shares of Canadian Solar closed at $7.42 yesterday.
The company reported solid second quarter results with better pricing than its peers and a ASP in the range of $1.55-$1.60/W.
For the third quarter CSIQ is forecasting gross margins in the range of 9-12 percent as ASP is estimated to be $1.40-$1.50/W for the 84WW DDU shipment recognized in the quarter. The company believes that it will experience growth in all of its regions in the third quarter.
An analyst at the firm comments, "The company estimated a 75% chance to convert the existing pipeline to shipment. Demand has been reasonable but macro uncertainty has delayed some customers. These customers could wait until September, creating more pricing uncertainty."
Jefferies slashed its FY11 and FY12 EPS estimates from $1.18 and $1.69 to $0.76 and $1.32. The tweaked its revenue estimates from $1.788 billion and $2.052 billion to $1.919 billion and $2.04 billion.
For more ratings news on Canadian Solar click here and for the rating history of Canadian Solar click here.
Shares of Canadian Solar closed at $7.42 yesterday.
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