Canadian Solar In Decent Position For The Short Term

Solar Canadian Solar CA

Canadian Solar (CSIQ) might be in better shape than many of its competitors, according to Steve O’Rourke at Deutsche Bank. He put out a note today after meeting with representatives from the company at InterSolar yesterday.

The company took its medicine early, and improved its cost structure. While it will post a loss in 2009, it could do better in the near term than competitors. O’Rourke is optimistic, but he maintains a hold rating and a price target of $9.

The big problem for Canadian Solar, just like any company, is the lack of financing. While it will be able to get its cost per wat down to $1.50, and it’s done a good job of clearing inventory, that’s just not enough to overcome the big hurdle presented by tighter credit markets.

The stock is up 7.28% on the day as of this writing.

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