What is Ahead for CSIQ Stock?
Canadian Solar Inc. (NASDAQ:CSIQ) has given investors 1,400 reasons to get bullish. The company is now estimating that it shipped 1,400 megawatts (MW) of modules in the last quarter of 2015, driving up CSIQ stock by more than 10%. (Source: “Canadian Solar ups revenue and shipment guidance for 2015,” PV Magazine, February 16, 2016.)
All told, it looks like Canadian Solar is on the up and up. The improved guidance for earnings could help distinguish the company from its rivals, particularly as the global economy weakens. We already saw the industry take a crushing blow last year.
Much of that damage was caused by persistently low oil prices. A slump in traditional energy prices spooked investors, driving them away from solar energy.
But that logic never made any sense to me. Solar and oil are rarely in competition. One is a transportation-based fuel (oil) and the other powers homes and businesses.
In any case, we’re seeing more and more evidence of a turnaround in some solar companies. Canadian Solar is definitely one of them.
Could CSIQ Stock Make a Comeback?
In addition to delivering more than its expected amount of modules, it seems like the company is back on the offensive. Canadian Solar recently announced a financing deal to bolster its expansion plans.
“We are pleased to announce the credit facility with Ping An Bank, a forward-looking, large commercial bank in China,” said CEO Dr. Shawn Qu. “This transaction again demonstrates Canadian Solar’s leadership position in the global solar industry.” (Source: “Canadian Solar Secures $300 Million Credit Facility With Ping An Bank,” Canadian Solar News Releases, February 18, 2016.)
“The loan facility will be used to facilitate the expansion of our utility-scale solar energy business in the U.S., and we look forward to continuing our strategic partnership with Ping An Bank as we continue to develop our global solar project pipeline to meet the growing demand for clean solar energy around the world,” Qu added. (Source: Ibid.)
It’s important to remember that CSIQ stock was trading above $39.00 a share only last year. I wouldn’t be surprised if the market turns bullish on the stock. There is nothing investors like more than getting a positive surprise in the form of increased guidance.
By simply returning to its 52-week high, Canadian Solar could post a gain of 103% this year.