Canadian Solar Inc. (NASDAQ:CSIQ), one of the world’s largest solar power companies, today announced that a severe tornado damaged its solar cell factory in Funing County, Jiangsu Province, China.
The tornado occurred in the afternoon of June 23, 2016 and caused property damage and personal injuries. The Funing solar cell facility is currently shut down while the Company assesses the extent of the damage. The Company carries both casualty and property insurance for its facilities, inventory, business interruption insurance, as well as health and medical insurance for all its employees, and is reviewing the extent and scope of this coverage with its insurance carriers. At this moment, the Company expects to recover substantially all of its financial losses through insurance. The Company’s other wafer, cell and module manufacturing facilities in China and abroad are not affected.
Funing is the newer and smaller of the Company’s two solar cell factories in China. The Company was anticipating that solar cell production from the Funing cell factory would reach approximately 267MW in the third quarter of 2016, representing 15-20% of its solar cell requirements for the quarter. The Company now plans to cover its solar cell needs by increasing the output from its Suzhou solar cell factory, ramping up production at its new cell factory in Thailand and by purchasing additional solar cells from its long term third-party suppliers, who have agreed to supply the additional solar cells. As a result, the Company expects to fulfill its module delivery commitments and maintain its annual module shipment guidance.
“Our thoughts are with the families of Canadian Solar employees and the local residents impacted by the severe weather. We have immediately dispatched our internal emergence response team from our other facilities in China to help our employees in Funing and people in the local communities. We are assessing the situation but do not expect it to have a material impact on our business,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. (Original Source)
Shares of Canadian Solar are down nearly 8% to $15.00 in pre-market trading. CSIQ has a 1-year high of $32.07 and a 1-year low of $14.16. The stock’s 50-day moving average is $17.18 and its 200-day moving average is $20.05.
On the ratings front, Canadian Solar has been the subject of a number of recent research reports. In a report issued on May 12, Roth Capital analyst Philip Shen maintained a Buy rating on CSIQ, with a price target of $28, which implies an upside of 72.3% from current levels. Separately, on the same day, Canaccord Genuity’s Jonathan Dorsheimer maintained a Buy rating on the stock and has a price target of $16.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Shen and Jonathan Dorsheimer have a total average return of -17.8% and -6.5% respectively. Shen has a success rate of 25% and is ranked #3866 out of 3980 analysts, while Dorsheimer has a success rate of 40% and is ranked #3699.
Overall, 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $45.00 which is 176.9% above where the stock closed yesterday.
Canadian Solar, Inc. designs, develops, and manufactures solar wafers, cells and solar power products. Its products include a range of standard solar modules built to general specifications for use in a range of residential, commercial and industrial solar power generation systems. Canadian Solar also designs and produces solar modules and products based on its customer’s requirements.