B.Riley FBR Assigns a Hold Rating on Canadian Solar Inc

By Ryan Adsit

B.Riley FBR analyst Carter Driscoll assigned a Hold rating to Canadian Solar Inc (NASDAQ: CSIQ) today and set a price target of $15. The company’s shares opened today at $17.10.

Driscoll said:

“We believe the ~600 bps increase in 4Q17 margins reflects low gross margins for the pending asset sales to the Korean investor, which we believe management included in their original 4Q17 guidance. On the other hand, the IPO of some of Canadian Solar’s Japanese solar assets delivered very high margins which more than offset the delayed U.S. sales. Inadequate staffing levels to conduct CFIUS reviews likely also played a role. It is possible the sale to the Chinese investor does not occur at all but that is speculation on our part given the political climate. Adding a complicating layer is the pending proposal to take the company private by the CEO at $18.47/share and the looming decision on the Section 201 trade case due later this month from the Trump administration. We continue to believe the $18.47/share bid represents only the first round and expect the board to fully evaluate whether it is a fair transaction for shareholders.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -3.9% and a 37.5% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and P10 Industries Inc.

Currently, the analyst consensus on Canadian Solar Inc is Hold and the average price target is $17, representing a -0.6% downside.

In a report issued on January 9, Goldman Sachs also initiated coverage with a Hold rating on the stock with a $19 price target.

Canadian Solar Inc’s market cap is currently $982M and has a P/E ratio of 40.23. The company has a book value ratio of 1.0392.

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Canadian Solar, Inc. engages in the design, development, and sale of solar photovoltaic modules. It offers solar ingots, wafers, cells, modules, and other solar power products. It operates through the Module and Energy segments. The Module segment designs, develops, manufactures, and sells solar power products and solar system kits.