The solar power company has a strong development platform, Barclays said.
The firm believes Canadian Solar "is well positioned to grow market share through manufacturing capacity expansion outside of China, coupled with U.S. policy-driven demand growth in the more stable North American market," the firm added.
Canadian Solar faces risks such as changing global solar policy, according to Barclays. The firm's top pick among alternative energy stocks is First Solar (FSLR).
"However, for investors interested in a higher risk/reward profile we view CSIQ as currently attractive," the firm said.
Canadian Solar stock is up 1.84% to $19.36 in pre-market trading on Monday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: CSIQ