Analyst Boosts 2010 Estimate For Canadian Solar

In the long term, however, Shrestha noted that the company has signed strategic partnership agreements with the Bank of China, the Bank of Communications and the Industrial and Commercial Bank of China, whereby the banks may provide up to 15 billion yuan ($2.2 billion) in potential credit facilities. These loans can be used to finance domestic and overseas solar projects using Canadian Solar modules, or applied toward trade financing, internal corporate projects or working capital.

The analyst added that the company has signed an agreement with Suzhou New District Government, which has agreed to provide about 7.5 million yuan ($1.1 million) in matching funds in conjunction with the subsidies provided by China's ministry of Finance and Ministry of Constructions.

Shrestha, who rates the stock "Hold," raised his 2010 profit estimate to $1 per share, compared with a previous outlook of 50 cents per share.