Boston, MA 06/13/2014 (wallstreetpr) – The shares of Canadian Solar Inc. (NASDAQ:CSIQ) inched up 1.53% on Thursday as it remains among the strong companies with operations in China to be owned by the company. The idea comes amid stringent duties imposed by the U.S. government on the solar products from China.
Focussed In Japan
While the company has its official headquarters in Canada, but its all the business affairs are China centric. Right from solar cells, wafers to modules, the company manufactures every bit of it in China. While the company has competitors back in China, it competes with industry players like, SunPower, First Solar and SunEdison in the U.S. That signifies that the company has developed a project pipeline in the same lines as its U.S. counterparts to focus on solar installations in Japan.
Another factor strengthening the view about the company is its progress so far. Canadian Solar Inc. (NASDAQ:CSIQ)’s shares have recorded a growth of over 140% over the last one year. A report in 24/7 Wall Street notes that the market consensus for the price target of the stock is at $42.30, which translates 70-75% gain in value from its current trading price.
Nomura’s Confidence
Apart from the general positive consensus drawn by the market, analyst at Normura Securities too are confident about the future growth of the company. Shrugging the fears of heavy import tariffs imposed by the U.S. government, the research firm’s analyst Nitin Kumar says that the company has a robust pipeline for delivery in Canada, which is good enough to cater to its needs for the current year, and thus, keep up its earnings momentum. Further, Kumar notes that CSIQ has recently extended the module capacity at its Canada plant to 500 MW, which should meet the demand in the U.S. Therefore, even if Canadian Solar Inc. (NASDAQ:CSIQ)’s modules will cost higher in the U.S. by up to $0.10-$0.15 per watt, it is in a position to maintain its margins conveniently.
