Canadian Solar Spikes On Barclays Upgrade

Canadian Solar (CSIQ) shares are sharply higher this morning after Barclays Capital solar analyst Vishal Shah lifted his rating on the stock to Equal Weight from Underweight, boosting his price target to $16, from $11.50. The stock closed yesterday at $14.69.

“With potential dilution risk out of the way, we see more balance risk-reward,” due to strong near-term fundamentals, improving credit access for project financing and a “relatively attractive valuation.”

Shah says checks find improving Q4 and Q1 visibility as well as potential for relatively flat Q1 shipments. He adds that evidence of market share gains combined with balance sheet strength make a valuation discount “unwarranted.”

He lifted his 2009 EPS estimate to $1.34, from $1.32; for 2010 he goes to $1.60, from 95 cents. The Street sees $1.32 this year, and $1.50 next year.

CSIQ today is up $1.23, or 8.4%, to $15.89.