Stock Update (NASDAQ:CSIQ): Canadian Solar Inc. Inks Operation and Maintenance Deal with Axium Infinity Solar LP for Eight Solar PV Plants


Canadian Solar Inc. (NASDAQ:CSIQ) has had an exciting week of announcements between yesterday’s announcement of having achieved a commercial operation on its 19.1MWp Gunma Aramaki solar power plant project in Japan and today’s reveal: the solar panel maker has shaken on a new operation and maintenance agreement with Axium Infinity Solar LP.

Under the terms of the deal, Canadian Solar will be responsibility for eight solar PV plans totaling 105.5 MWp, from plant monitoring to performance management to preventative as well as corrective maintenance at all the facilities. The eight PV plants, located in Ontario, Canada are Brockville I, Brockville II, Burrits Rapids, Mississippi Mills, William Rutley, and New Liskeard I, III, and IV. Canadian Solar’s Operation and Maintenance portfolio in Ontario is now 497 MWp with over 1 GWp in operation or contracted worldwide.

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“We selected Canadian Solar to operate and maintain our solar facilities because of their exemplary track record with PV monitoring, maintenance, reporting, and management throughout Ontario,” said Juan Caceres, Senior VP at Axium Infrastructure.

“As one of the leading providers of solar products and solutions worldwide for 16 years with extensive experience operating and maintaining our own solar facilities, offering Operations and Maintenance services to customers was a natural extension of our value proposition,” said Dr. Shawn Qu, founder, chairman, and chief executive officer of Canadian Solar. “We are thrilled to take on responsibility for operations and maintenance for eight of Axium Infinity Solar’s PV facilities in Ontario. We look forward to working with them to maximize the energy production, revenues, and profitability from these solar properties.”

Shares of Canadian Solar closed yesterday at $17.15, up $0.27 or 1.60%. CSIQ has a 1-year high of $19.09 and a 1-year low of $10.86. The stock’s 50-day moving average is $17.54 and its 200-day moving average is $16.51.

On the ratings front, Canadian Solar has been the subject of a number of recent research reports. In a report issued on December 15, Axiom analyst Gordon Johnson downgraded CSIQ to Hold, with a price target of $17, which represents a slight downside potential from current levels. Separately, on December 12, J.P. Morgan’s Paul Coster downgraded the stock to Sell and has a price target of $15.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gordon Johnson and Paul Coster have a yearly average return of 1.0% and a loss of -3.9% respectively. Johnson has a success rate of 54% and is ranked #2477 out of 4735 analysts, while Coster has a success rate of 43% and is ranked #4492.

Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 2 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 $19.86 which is 15.8% above where the stock closed yesterday.

Canadian Solar, Inc. engages in the design, development, and sale of solar photovoltaic modules. It offers solar ingots, wafers, cells, modules, and other solar power products. It operates through the Module and Energy segments. The Module segment designs, develops, manufactures, and sells solar power products and solar system kits. The Energy segment consists of solar power project development and sale; engineering, procurement, and construction and development services; operations and maintenance services; and operating solar power projects, and sales of electricity.

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