We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Solar (CSIQ) Loses Ground as Barclays Cuts Rating
Read MoreHide Full Article
Shares of Ontario, Canada-based solar company, Canadian Solar Inc. (CSIQ - Free Report) , dropped 4.23% yesterday after Barclays downgraded the stock rating to "Equal Weight" from "Overweight" on Aug 24.
The firm also slashed its price target to $14 from $24 as it believes that Canadian Solar’s stock poses a greater risk relative to its peers, such as First Solar Inc. (FSLR - Free Report) and 8point3 Energy Partners LP .
The firm remained careful on the bigger issue of “unintended consequences of government policy distorting the solar supply/demand relationship on a global scale”. Hence, it now expects the company to generate gross margins of 12.7% in 2017, down from 16.2% in 2016. Even, Barclays lowered its earnings estimates for 2016, 2017 and 2018 to $2.00, $1.54 and $1.66 from $2.35, $2.65 and $3.15, respectively.
Although Barclays acknowledges Canadian Solar’s advantage of high module market share and operating history, it believes that the company's net debt to EBITDA ratio poses a greater risk than peers heading into 2017.
Q2 at a Glance
Canadian Solar reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by a whopping 70%. Reported earnings also surged 119.4% from the year-ago tally of 31 cents.
Again, the company’s total revenue of $805.9 million surpassed the Zacks Consensus Estimate of $711 million by 13.3%. Revenues were also up 26.6% from $636.7 million reported in the prior-year quarter (read more: Canadian Solar Beats on Q2 Earnings and Revenues).
Zacks Rank & A Key Pick
Canadian Solar presently carries a Zacks Rank #4 (Sell). Investors may consider a better-ranked stock in the space like Sunrun Inc. (RUN - Free Report) that sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Canadian Solar (CSIQ) Loses Ground as Barclays Cuts Rating
Shares of Ontario, Canada-based solar company, Canadian Solar Inc. (CSIQ - Free Report) , dropped 4.23% yesterday after Barclays downgraded the stock rating to "Equal Weight" from "Overweight" on Aug 24.
CANADIAN SOLAR Price
CANADIAN SOLAR Price | CANADIAN SOLAR Quote
The firm also slashed its price target to $14 from $24 as it believes that Canadian Solar’s stock poses a greater risk relative to its peers, such as First Solar Inc. (FSLR - Free Report) and 8point3 Energy Partners LP .
The firm remained careful on the bigger issue of “unintended consequences of government policy distorting the solar supply/demand relationship on a global scale”. Hence, it now expects the company to generate gross margins of 12.7% in 2017, down from 16.2% in 2016. Even, Barclays lowered its earnings estimates for 2016, 2017 and 2018 to $2.00, $1.54 and $1.66 from $2.35, $2.65 and $3.15, respectively.
Although Barclays acknowledges Canadian Solar’s advantage of high module market share and operating history, it believes that the company's net debt to EBITDA ratio poses a greater risk than peers heading into 2017.
Q2 at a Glance
Canadian Solar reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by a whopping 70%. Reported earnings also surged 119.4% from the year-ago tally of 31 cents.
Again, the company’s total revenue of $805.9 million surpassed the Zacks Consensus Estimate of $711 million by 13.3%. Revenues were also up 26.6% from $636.7 million reported in the prior-year quarter (read more: Canadian Solar Beats on Q2 Earnings and Revenues).
Zacks Rank & A Key Pick
Canadian Solar presently carries a Zacks Rank #4 (Sell). Investors may consider a better-ranked stock in the space like Sunrun Inc. (RUN - Free Report) that sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>