NEW YORK (AP) -- Shares of Canadian Solar Inc. jumped on Tuesday along with the broader solar sector and as an analyst upgraded the stock, citing an attractive stock value, reduced risk and better visibility.

The solar energy system maker's shares climbed $1.56, or 11 percent, to $16.25 in morning trading.

Barclays Capital analyst Vishal Shah raised his rating for Canadian Solar to "Equal Weight" from "Underweight."

Canadian Solar recently completed a common stock offering of 6.9 million shares, generating $103.3 million in net proceeds. The move raised concerns over the possible risk of share dilution, but Shah said this potential risk is out of the way.

"We see a more balanced risk-reward resulting from robust near term fundamentals, improving bankability situation (ability to secure project financing) and relatively attractive valuation," Shah said in a note to clients.

In the near term, Shah expects shares to reach as high as $18 per share and believes the company's downside is limited $12 per share. Shah raised his price target for the company to $16 from $11.50.

Shah estimates a full-year profit of $1.34 per share, compared with analyst estimates of $1.43 per share, according to a poll by Thomson Reuters. For 2010, Shah expects earnings at $1.60 per share, compared with analyst predictions of $1.54 per share.