Canadian Solar downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Mark Strouse downgraded Canadian Solar to Underweight from Neutral with a price target of $22, down from $32. The stock has modestly outperformed peers over the past couple of months despite significant declines in global module selling prices, which presents downside risk over the next few quarters, the analyst tells investors in a research note. The firm says that while the solar industry clears channel inventory over the coming quarters in certain markets, other areas of the value chain which have relatively more pricing power likes trackers and inverters will recover sooner than modules, driving its relatively less favorable view towards Canadian Solar over the near-term. JPMorgan expects the stock to underperform until visibility improves.