Canadian Solar: Collins Stewart Cuts Rating, Estimates; Cites "Harsh Pricing Environment"

Collins Stewart solar analyst Daniel Ries today cut his rating on Canadian Solar (CSIQ) to Hold from Buy, and slashed EPS estimates, citing “the harsh pricing environment” in the solar sector. He now sees 2008 EPS of $1.85, down from $2.18. But the real change is for 2009: He goes to $1.74, from $2.94.

Ries notes that European buyers are demanding substantially lower prices. “This presents a challenge for CSIQ, as it is a competitive company but not a low cost producer at this point,” he writes.

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