Canadian Solar (CSIQ) Shares Plummeting Amid Weak Margins Guidance, Macquarie Downgrade

Shares of Canadian Solar (Nasdaq: CSIQ) have tumbled more than 13% today following last night's updated Q1 shipment and margin guidance. Although the company raised its quarterly shipment guidance from 180-190MW to 189-191MW, traders are focusing on gross margin guidance which fell from "midteens" to 13-13.5%.

An analyst at Macquarie seems to be taking a similar stance as investors today, downgrading the stock from Outperform to Neutral and lower the firm's price target from $35 to $23 earlier. The analyst considers yesterday's guidance the second strike for Canadian Solar -- too many strikes in an industry that relies heavily on confident and credible executives. The firm now sees Canadian Solar reporting quarterly EPS of $0.03, down from $0.53 previously. The Street is currently looking for Q1 EPS of $0.49.

With shares of Canadian Solar trading around $18.56 at last check, Macquarie's new price target on the stock suggests potential upside of almost 24%.

To track all the upgrades/downgrades on shares of Canadian Solar, visit our Analyst Ratings page.

Canadian Solar Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of solar cell and solar module products that convert sunlight into electricity for various uses in Canada and internationally.

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