Stock Update (NASDAQ:CSIQ): Canadian Solar Inc. Subsidiary Recurrent Energy Signs 60 Megawatt Solar Power Purchase Agreement With SMUD

Canadian Solar Inc. (NASDAQ:CSIQ) announced a 20-year Power Purchase Agreement (PPA) for 60 MWac of solar power with the Sacramento Municipal Utility District (SMUD).

SMUD will receive electricity from the 60 MWac Tranquillity 8 Verde solar photovoltaic (PV) project, located in Fresno County, California. Construction of the project is expected to begin in mid-2017. The project, which will generate enough electricity to power approximately 15,000 homes, will begin delivering power to SMUD in support of its SolarShares program and other renewable energy goals by early 2018.

“SMUD continues to add more renewable, non-carbon supplies to our power mix,” said Sherri Gervin, SMUD Supervising Principal Energy Trading Commodity Contracts Specialist. “SMUD was the first large California utility to have 20 percent of its power supply come from sources classified by California as renewable, and is on track to meet the state mandate requiring utilities to increase their renewable portfolio to 33 percent by 2020. In the last decade the renewable portion of our power mix has grown from 7 percent to 28 percent,” said Gervin.

Tranquillity 8 Verde is Recurrent Energy’s fifth solar project with SMUD. In 2012, Recurrent Energy completed a portfolio of four projects that supply power to SMUD under multiple 20-year PPAs.

“We are proud to partner with SMUD to continue delivering reliable, cost-competitive solar power to their customers,” said Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar. “SMUD is a leader in driving adoption of large-scale solar power and should be commended for its sustained commitment.”

Tranquillity 8 Verde is part of the 200 MWac Tranquillity 8 project being developed by Recurrent Energy. The remaining 140 MWac will be purchased by MCE, PG&E and SCE under long-term power purchase agreements.

Shares of Canadian Solar closed yesterday at $12.63, up $0.09 or 0.72%. CSIQ has a 1-year high of $23.56 and a 1-year low of $10.25. The stock’s 50-day moving average is $12.51 and its 200-day moving average is $13.29.

On the ratings front, CSIQ has been the subject of a number of recent research reports. In a report issued on November 22, Roth Capital analyst Philip Shen downgraded CSIQ to Hold, with a price target of $11, which reflects a potential downside of -13% from last closing price. Separately, on the same day, FBR’s Carter Driscoll downgraded the stock to Hold and has a price target of $12.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Shen and Carter Driscoll have a yearly average loss of -16.9% and -20.9% respectively. Shen has a success rate of 24% and is ranked #4284 out of 4359 analysts, while Driscoll has a success rate of 21% and is ranked #4280.

Overall, 3 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $31.00 which is 145% 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. Canadian Solar was founded by Shawn Qu in October 2001 and is headquartered in West Guelph, Canada

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