Jefferies & Company Reports on Canadian Solar

Jefferies & Company commented on Canadian Solar (NASDAQ: CSIQ) in a report released today. In the report, Jefferies & Company was positive in its assessment of the company.

Jefferies writes, "Both ASP and wafer costs are significantly lower than expected. CSIQ believes module pricing will be at $1.35-1.40/W in 2Q. Wafer costs are currently $0.58/W. With a total module cost of ~$1.22/W, module GM is 12.6%; in line with our current module GM estimate of 12.7%. We believe CSIQ 3Q costs will decline to $1.05/W. If we assume module pricing at $1.30-1.35 in 3Q as a worst case, module GM would be 19-22%, vs. our current estimate of 15.2%."

Jefferies currently has a Buy rating on Canadian Solar and a price target of $14. Shares of CSIQ closed at $9.55 on Thursday.