Auriga Remains Neutral On Canadian Solar (CSIQ) After Q2 Results

Canadian Solar (CSIQ) posted Q2 earnings results yesterday and Auriga is maintaining its Neutral stance on the stock since there is low visibility as to when the company can improve its margin structure. While there is expected improvement by Q4, the firm doesn’t have much confidence in the company’s ability to predict shipments.  Should the margins improve as management has advertised, they may revise their 2011 estimates upwards significantly.  Auriga see the stock as fairly valued at current levels and maintains a Hold rating with $13 price target.

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Shares of CSIQ are up nearly 2% today and continue to hang in around the 50 day moving average, but getting a bit overbought in the short term.  Combining the fundamental uncertainty with the technical ambiguity, I’d have to agree that making a decision to go long CSIQ should be delayed.

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