Analyst Boosts 2010 Estimate For Canadian Solar

NEW YORK (AP) — Canadian Solar Inc. faces near-term pricing challenges, but its financing partnerships will boost the solar products maker's long-term growth potential, said an analyst on Wednesday as he raised his 2010 profit estimate for the company.

Shares of Canadian Solar jumped 86 cents, or 7.8 percent, to $11.89 in midday trading.

On Tuesday, the company reported a net loss of $4.8 million, or 13 cents per share, beating analyst expectations of a loss of 25 cents per share, according to a poll by Thomson Reuters.

Financing constraints, declining module selling prices and some expected order reductions prompted the company to lower its full-year shipments estimates to between 200 megawatts and 220 megawatts, compared with an earlier estimate between 300 megawatts and 350 megawatts.

Lazard Capital analyst Sanjay Shrestha said lower selling prices, the economic recession and constrained credit markets will keep the company challenged in the near term. He lowered his full-year estimate to a loss of 11 cents per share, compared with an earlier prediction of a loss of 6 cents per share.