Canadian Solar Inc. (NASDAQ:CSIQ) announced that its wholly owned subsidiary, Canadian Solar Solutions Inc., completed the sale of its 10 MW AC BeamLight LP (“BeamLight”) and its 10 MW AC Alfred solar power plants to 9285806 Canada Inc. and Concord BeamLight GP2 Ltd., affiliates of Concord Green Energy Inc. (“Concord”) for over CAD152.5 Million (USD115 Million).
The transaction was closed on December 29, 2016 and the Company expects to recognize the difference between the sales proceeds and the book value of the projects under ‘Other income (expenses)’ in the income statement for the fourth quarter of 2016. BowMont Capital and Advisory acted as financial advisor to Concord on this transaction.
The BeamLight plant is located in Georgina, Ontario and uses approximately 46,224 Canadian Solar MaxPower CS6X-P PV modules. The Alfred plant is located in Alfred, Ontario and uses about 46,656 Canadian Solar MaxPower CS6X–P PV modules.
These solar systems will generate significant environmental benefits. The amount of clean solar energy that the plants will collectively generate is estimated at 35,941 MWh per year and 665,130 MWh over 20 years. The amount of carbon dioxide that will be displaced during the systems’ 20 year lifetimes is approximately 467,437 metric tons, equivalent to taking around 98,738 cars off of the road for one year.
“Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented: “We are very pleased to announce the successful sale of two operating solar power plants in Canada. This deal demonstrates that we are well on track to monetize our quality solar power plant assets to recycle our capital and strengthen our balance sheet. This is another successful cooperation between Canadian Solar and Concord Green Energy after a previous transaction of 5 solar power plants in Canada. We value our strategic partnership with Concord Green Energy and look forward to continuing our successful cooperation.” (Original Source)
Shares of Canadian Solar closed yesterday at $12.85. CSIQ has a 1-year high of $26.07 and a 1-year low of $10.25. The stock’s 50-day moving average is $12.04 and its 200-day moving average is $13.53.
On the ratings front, Canadian Solar 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 implies a downside of 14% from current levels. Separately, on the same day, FBR’s Carter Driscoll downgraded the stock to Hold and has a price target of $12.
According to TipRanks.com, 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 -18.7% and -20.9% respectively. Shen has a success rate of 22% and is ranked #4294 out of 4369 analysts, while Driscoll has a success rate of 23% and is ranked #4285.
Sentiment on the street is mostly neutral on CSIQ stock. Out of 4 analysts who cover the stock, 3 suggest a Hold rating and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $31.00, which represents a potential upside of 141% from where the stock is currently trading.
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