Auriga issued a research report this morning on Canadian Solar (CSIQ) heading into its earnings report tomorrow. While the firm has an upside bias, it doesn’t have enough conviction either way to make a definitive call so maintains its Hold rating with a $13 price target.  Cmon Mark, go out on a limb! 🙂 

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They see CSIQ missing Q2 EPS estimates with shipments coming in at 175MW, revenue at $300 million and believe EPS will come in .10 lower than the consensus estimate of .19/share.

While Auriga has already incorporated into its model the reiterated shipment guidance and increased manufacturing capacity, they feel management could surprise by indicating improving margins in the 2nd half of the year.  During the last update on Aug 19, CSIQ management indicated that margins “may” improve.

Canadian Solar recently reported their delayed Q1 results and will report Q2 results tomorrow morning before the bell.