Canadian Solar Inc. (CSIQ) may be vulnerable to future downgrades and price-target reductions
Canadian Solar Inc. (NASDAQ:CSIQ) is getting shelled this afternoon, possibly due to the company's exposure to China -- where markets continued to reel in the wake of
soft purchasing managers data -- as well as
broader energy-sector headwinds. At last check, CSIQ was down almost 8% at $24.73, cutting its year-to-date advance to just 2.2%.
Digging deeper on the charts, CSIQ appeared to bounce back last week after briefly breaching $24. However, the stock ran into its descending 30-day trendline, and is now headed decisively lower. In fact, since the shares' most recent high of $40.08 on May 11, they've surrendered 38%.
Additionally, from a
contrarian perspective, Canadian Solar Inc. (NASDAQ:CSIQ) may be set up to suffer additional losses. Despite the stock's significant underperformance in recent months, 100% of analysts consider the shares a "strong buy." Plus, CSIQ's consensus 12-month price target of $45.24 stands in territory not charted since June 2008. In other words, the security could be
vulnerable to a round of downgrades and/or price-target cuts.