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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