Canadian Solar (NASDAQ:CSIQ) Diversifying Out of Germany

With a lot of solar companies dependent on the German market for growth, Canadian Solar (NASDAQ:CSIQ) has been quietly and wisely diversifying from that market and booking more business, even though there is a supply and demand balance problem in the overall sector.

Canaccord said, "Recently, uncertainty around the level of 2011 demand and a supply imbalance has caused money to flow out of the solar sector and pressure valuations. That said, Canadian Solar appears to be building a strong book of business and is diversifying from Germany, the market with the most downside risk. Further, we believe the company is on track to achieve a scale and cost structure through internal enhancements and additional vertical integration that puts it in a strong position to remain profitable should demand momentarily soften in 2011."

Canaccord maintains a "Buy" rating on Canadian Solar, which was trading at $14.46, gaining $0.92, or 6.79 percent at 1:21 PM EST. Canaccord has a price target of $18 on them.