Canadian Solar (CSIQ) shares soared 8.62% in pre-market trading on Monday, despite receiving a downgrade from Jefferies. The surge comes as investors appear to focus on the significant increase in the price target rather than the rating change.

Jefferies downgraded Canadian Solar from Buy to Hold, but simultaneously raised its price target from $13.70 to $19.64. This substantial increase in the price target, representing a potential upside of over 40% from the previous target, seems to be outweighing the impact of the downgrade in investors' minds. The market's positive reaction suggests that traders are interpreting the higher price target as a vote of confidence in the company's future prospects, despite the more cautious rating.

It's worth noting that, according to FactSet, the average rating for Canadian Solar among analysts is Hold, with a mean price target of $12.57. The disparity between Jefferies' new price target and the consensus target indicates a potentially more optimistic outlook from Jefferies, even with the downgrade. As the trading day progresses, it will be interesting to see if this pre-market enthusiasm translates into sustained gains for Canadian Solar.