Jefferies Cuts Price Targets on Canadian Solar (CSIQ), Not Yet in "Muddy Water"
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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 maintaining its Hold rating on shares of Canadian Solar (NASDAQ: CSIQ) and is lowering its price target from $4 to $2.50, but calls the company a
survivor."
The firm highlights CSIQ may benefit from potential duties/tariffs that are likely imposed on Chinese manufactured product because the assembly in its Canadian facility uses Taiwanese cells, and existing qualification.
Management has found out that its cheaper to purchase wafers from GCL than making them. This will allow the company to reduce its processing cost to $0.65 per wafer.
An analyst at Jefferies comments, "While most solar companies are talking vaguely about cost reductions, CSIQ reduced processing costs, working capital, and debt. Having a seasoned CFO from the semiconductor industry is a unique advantage, and may help CSIQ avoid “muddy water” issues that may emerge in the industry. CSIQ paid down its commercial debt in China, reducing bank borrowings by ~$100 million."
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 $2.48 yesterday.
survivor."
The firm highlights CSIQ may benefit from potential duties/tariffs that are likely imposed on Chinese manufactured product because the assembly in its Canadian facility uses Taiwanese cells, and existing qualification.
Management has found out that its cheaper to purchase wafers from GCL than making them. This will allow the company to reduce its processing cost to $0.65 per wafer.
An analyst at Jefferies comments, "While most solar companies are talking vaguely about cost reductions, CSIQ reduced processing costs, working capital, and debt. Having a seasoned CFO from the semiconductor industry is a unique advantage, and may help CSIQ avoid “muddy water” issues that may emerge in the industry. CSIQ paid down its commercial debt in China, reducing bank borrowings by ~$100 million."
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 $2.48 yesterday.
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