Wells Fargo analyst Sam Dubinsky this morning raised his rating on Canadian Solar (CSIQ) to Outperform from Market Perform, setting a new valuation range of $16-$20, up from $12-$17.
“Shares have done poorly due to margin pressure and an accounting investigation, but we believe both issues will prove backward looking,” he writes in a research note. “Street estimates are low, quarterly comps are easy after a tough Q1 and risk/reward is favorable.”
Dubinsky lifts his 2010 EPS forecast to $1.37, from $1.20; for 2011, he now sees $1.99, up from $1.73.
On the accounting probe, he contends that the investigation is mostly “an inconvenience,” and that the scope is the situation is modest, focused on only a small number of sales transactions.
Despite the upgrade, CSIQ is down 9 cents, or 0.7%, to $12.83.
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