Is Canadian Solar Inc. (CSIQ) Headed Even Lower?

Canadian Solar Inc. (CSIQ) may be vulnerable to future downgrades and price-target reductions

Aug 3, 2015 at 2:24 PM

CSIQ

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.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!