Analyst Update: Canadian Solar, First Solar, DDR Corp

Analysts adjusted their ratings and price targets on Canadian Solar Inc. (CSIQ), First Solar, Inc. (FSLR), and DDR Corp (DDR)

Dec 30, 2015 at 9:27 AM
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Analysts are weighing in today on solar energy interests Canadian Solar Inc. (NASDAQ:CSIQ) and First Solar, Inc. (NASDAQ:FSLR), as well as real estate investment trust (REIT) DDR Corp (NYSE:DDR). Here's a quick roundup of today's brokerage notes on CSIQ, FSLR, and DDR.

  • CSIQ is set to open 0.5% lower, even after Cowen and Company hiked its price target to $35 from $28 -- a 21% premium over Tuesday's closing price of $28.94. Canadian Solar Inc. is up nearly 20% this year, and has skyrocketed 74% in the fourth quarter alone. Option traders seem optimistic; on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CSIQ has a 10-day call/put volume ratio of 13.83 -- showing nearly 14 calls bought to open for each put over the last 10 trading days. Plus, this ratio is just 2 percentage points from an annual bullish high. Still, there is buying power left on the sidelines: 13.5% of the security's available float is currently sold short. If these bears abandon their positions, the shares could extend their uptrend.

  • FSLR is pointed 0.1% lower, after closing at $66.41 on Tuesday. The stock also received a price-target bump at Cowen and Company -- to $75 from $70, in territory not seen since 2011. First Solar, Inc. has risen nearly 50% in 2015, and hit a yearly high of $67.80 just last week. In fact, FSLR may be getting some attention from portfolio managers hoping to dress up their holdings for the end of the year. Brokerages following the stock currently give it 10 "buy" ratings, compared to six "holds" and one "sell," meaning there is still plenty of room for upgrades on this strong performer. Near-term option traders are more call-heavy than usual, though. The stock sports a Schaeffer's put/call open interest ratio (SOIR) of 0.64 -- lower than all but 4% of readings in the past year. 

  • DDR is poised to drop 2% at the open, after closing at $17.04 on Tuesday, due to a downgrade. Deutsche Bank lowered its rating on the stock to "hold" from "buy," and cut its price target by $2 to $17. DDR Corp has slipped 7.2% year-to-date, and analysts are wary, with the majority offering up lukewarm "holds." On the other hand, over the last two reporting periods, short interest on DDR fell by 45.7%, and now accounts for just over 2% of the stock's available float. 

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