Auriga Reiterates Buy Rating On Canadian Solar
According to Auriga, Canadian Solar (NASDAQ: CSIQ) Buy rating is reiterated.
Auriga reported that with CSIQ trading 0.8x tangible book and 0.9x gross cash, it finds CSIQ shares too inexpensive to ignore and suggest investors with a time frame beyond this earnings season re-consider shares of CSIQ given low downside potential versus the continued positive earnings potential that will push book value higher through the coming quarters. “Additionally, we point out that CSIQ traded to 0.9x tangible book after its announced accounting issue in 2010 – a level higher than it trades today. We lower our 2011 sales estimates to the low end of management guidance, reduce 2012 sales estimates in-line with our 2012 industry growth forecast, and increase cost expectations for higher silver prices. Along with our model reductions, we shift our valuation methodology to book value to account for perceived investor risk. Our new price target of $18 is 1x our 4Q12 book value estimate, down from our prior target of $20 based on 8x our prior 2012 EPS estimate of $2.48.”
Canadian Solar closed yesterday at $10.14.
