Nomura Securities Maintains a 'Neutral' on Canadian Solar (CSIQ); Lowered Gross Margin Guidance

Nomura Securities maintains a 'Neutral' on Canadian Solar (NASDAQ: CSIQ) price target of $9.60.

Nomura analyst, Nitin Kumar, said, "Canadian Solar last night lowered its 3Q11F gross margin guidance to 2~5% (earlier: 9~12%) on the back of weaker ASPs; albeit reiterated its 3Q shipment guidance as it noted rush-orders at quarter-end. While ASPs coming in lower than originally guided was largely expected, the update highlights two key issues facing the industry – 1) Higher cost inventory build on delayed demand hurting margins; and 2) 4Q11F to see rush orders but existing inventories to still push utilization lower. We are reviewing our numbers and maintain our rating."

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 $3.27 yesterday.

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