Canadian Solar (NASDAQ:CSIQ) has seen its price target raised from $9.00 to $10.00 by JPMorgan Chase & Co., according to a report published on October 8, 2023. Despite this upward adjustment, the financial institution maintains an underweight rating on the stock of the solar energy provider. This change reflects a broader trend among financial analysts as several research firms reassess their positions on Canadian Solar’s shares.
In a similar move, the Goldman Sachs Group also increased its target price for Canadian Solar to $10.00 while issuing a “sell” rating on the stock. Meanwhile, Mizuho revised its price objective downward from $17.00 to $15.00 and assigned an “outperform” rating in a report released on August 22, 2023. Additionally, Wells Fargo & Company adjusted their target from $11.00 to $10.00, maintaining an “equal weight” rating as of September 3, 2023.
On September 26, 2023, Wall Street Zen raised its rating from “sell” to “hold,” while Jefferies Financial Group reiterated a “hold” rating, increasing its price target to $19.64, up from a previous $13.70 in a report dated November 3, 2023. Currently, two analysts have given Canadian Solar a Buy rating, four have rated it as Hold, and four have issued a Sell rating. Overall, the average rating stands at “Reduce” with a mean price target of $12.71, according to data from MarketBeat.com.
Current Stock Performance and Financial Results
Shares of Canadian Solar opened at $33.58 on October 8, 2023. The company’s 50-day moving average price is $16.74, while its 200-day moving average price stands at $13.15. The firm has a debt-to-equity ratio of 0.98, a quick ratio of 0.87, and a current ratio of 1.09. Over the past year, Canadian Solar has seen a 52-week low of $6.57 and a high of $34.59. With a market capitalization of $2.25 billion, the company has a negative PE ratio of -55.97 and a beta of 1.35.
The company reported its quarterly earnings on November 13, 2023, indicating a loss of ($0.58) earnings per share, surpassing analysts’ expectations of ($1.08) by $0.50. Despite the positive surprise, Canadian Solar experienced a negative return on equity of -4.97% and a net margin of -0.12%. Revenue for the quarter reached $1.49 billion, exceeding the consensus estimate of $1.37 billion. This represents a 1.3% decline in revenue when compared to the same period last year, during which the company reported an EPS of ($0.31). Looking ahead, Canadian Solar has set its guidance for Q4 2025 at a forecast of -0.23 EPS.
Institutional Investment Trends
Recent changes in institutional holdings also highlight evolving confidence in Canadian Solar. IvyRock Asset Management HK Ltd significantly increased its holdings by 87.8% in the first quarter, now owning 2,607,700 shares valued at approximately $22.6 million. Two Sigma Investments LP entered a new position in the third quarter valued at around $11.5 million.
Additionally, Greenwoods Asset Management Hong Kong Ltd. expanded its stake by 60.4%, now owning 1,115,861 shares worth approximately $9.65 million. Mackenzie Financial Corp increased its holdings by 7.4%, bringing its total to 5,884,865 shares valued at about $64.97 million. Furthermore, JPMorgan Chase & Co. has raised its position by 206.6% in the third quarter, now holding 571,893 shares worth around $7.46 million. Currently, institutional investors own 52.36% of Canadian Solar’s stock.
Canadian Solar Inc., along with its subsidiaries, provides solar energy and battery energy storage solutions globally, with operations in Asia, the Americas, Europe, and other regions. The company operates through two primary segments: CSI Solar and Recurrent Energy. The CSI Solar segment focuses on the design, development, and manufacturing of solar ingots, wafers, cells, modules, and other related products.