CSIQ-PetersenDean in Solar JV - Analyst Blog

By Zacks Equity Research,

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Global solar manufacturer, Canadian Solar Inc. ( CSIQ ) announced its partnership venture with US based private contractor, PetersenDean, for the development of a new roofing program. PetersenDean, a well-positioned roofing company, will leverage its strengths to improve the installation quality and costs for a new residential solar project in California.

Canadian Solar, on previous occasions, was involved in a string of ambitious solar contracts. The company's subsidiary, Canadian Solar Australia, entered into a 20 Megawatt (MW) module supply agreement with solar distribution company, REDSET. The company also recently, announced its decision to deliver 26MW of CS6P-P solar power modules for the "San Fermin" solar power plant installed in Puerto Rico by EPC Contractor TSK Solar.

With increasing preference towards eco-green products and services witnessed in the developed countries like the U.S., Canadian Solar is expected to capitalize from this rising demand for solar energy. We believe these multiple projects would fetch lucrative returns for the company and strengthen Canadian Solar's position in the worldwide renewable markets.

Canadian Solar's high-quality modules and efficient services have helped in bringing solar power effectively to consumers as well as producers. With this new roofing program, the company would be able to provide easy and reliable solar services to the consumers countrywide, thereby expanding consumer footprint and adding to near-term top-line. However, ongoing economic depression in the European market could limit Canadian Solar's future business growth goals.

Canadian Solar, for the third quarter 2012, estimates export volumes to be in the range of 390 MW to 420 MW and expects gross margin to be between 2% and 5%. The company's export volumes for 2012 are expected in the range of roughly 1,800 MW to 2,000 MW of solar products.

The Zacks Consensus Estimates for the third quarter and full year 2012 are currently pegged at a loss of 63 cents per share and a loss of $1.90 per share, respectively. Numbering among its competitors is Arizona-based FirstSolar Inc. ( FSLR ). FirstSolar announced its plans to build four solar plants for New Mexico-based utility company, PNM Resources, Inc. ( PNM ). The aggregate capacity generation from these plants will be around 20 MW and are expected to come online by the end of 2013.

Based in Guelph, Canada, Canadian Solar along with its subsidiaries, engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. The company has a Zacks #3 Rank (Hold rating).

CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
FIRST SOLAR INC (FSLR): Free Stock Analysis Report
PNM RESOURCES (PNM): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CSIQ , FSLR , MW , PNM

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