NEW YORK (TheStreet) -- Canadian Solar (CSIQ) rose more than 4.5% on Friday after the company's wholly-owned subsidiary, Canadian Solar Solutions, completed the sale of a power plant to a subsidiary of BluEarth Renewables.
Canadian Solar Solutions sold its 8.5 megawatt AC solar power plant called Little Creek to BluEarth for C$53 million. The sale is the first of four scheduled solar projects that Canadian Solar plans to sell to BluEarth for a total of 38.5 MW AC.
"We are pleased to complete the sale and transfer of the first of four solar projects to BluEarth Renewables," said Canadian Solar Chairman and CEO Shawn Qu in a statement. "This is an important group of projects as it helps move BluEarth closer to its goal of having C$1 billion of high-quality, long-term contracted renewable energy plants. From Canadian Solar's standpoint, this successful project sale closure allows us to redeploy resources to other projects and to further expand our pipeline, which exceeds 4.5 gigawatts."
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TheStreet Ratings team rates CANADIAN SOLAR INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CANADIAN SOLAR INC (CSIQ) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."