Citing good execution and margin expansion, Nomura's Nitin Kumar hikes the price target on...

|By:, SA News Editor

Citing good execution and margin expansion, Nomura's Nitin Kumar hikes the price target on Canadian Solar (CSIQ +10%) just slightly from $6.90 to $25. Kumar changes CSIQ's peer group to "companies with significant project business" as the company's system business should "generate 50%-plus earnings [in FY13-15] vs. 13% in 2012." Kumar uses the new peer group's target price-to-book value for FY14 (and a 20% discount for "execution risks and higher interest rates") to arrive at the new PT.