Canadian Solar Inc Stock Forecast:
According to 5 analysts’ Canadian Solar Inc stock predictions, the average target price is USD 29.44 in the next 12 months. The average analyst rating is “Under-perform.” Stock Target Advisor‘s analysis of Canadian Solar Inc is “Bullish,” based on 7 positive and 3 negative signals. Canadian Solar Inc’s last closing stock price was USD 39.91. The stock has decreased by 6.49% in the past week, increased by 29.16% in the past month and 58.12% in the past year.
Analyst Coverage Change:
Goldman Sachs maintains Canadian Solar Inc. with a “Sell” rating and raises the price target to $36 from $33 on the company’s stock.
The “Sell” rating and the increased price target suggest that the analyst is cautious about the company’s prospects, but believes that there may be a temporary increase in the stock price in the near future.
Positive Fundamentals:
Canadian Solar Inc. stock is a strong investment opportunity due to its superior risk-adjusted returns. It has performed well on a risk-adjusted basis compared to its peers in the sector, and is in the top quartile. Additionally, the stock is underpriced compared to earnings and book value, which may indicate a potential buying opportunity, but it is important to also check its financial performance to ensure there are no underlying issues.
The company has demonstrated strong management performance, with superior return on equity and assets in the most recent four quarters, placing it in the top quartile among its peers. The company also has low debt, which makes it more flexible, but it’s important to check for any negative news and the state of its sector, as low debt may also be a sign of a lack of growth potential.
Finally, Canadian Solar Inc. has positive total free cash flow in the most recent four quarters, providing further evidence of its financial strength.
Negative Fundamentals:
Canadian Solar Inc. has below median dividend returns with an average income yield over the past 5 years that is lower compared to its peers. This may not be an issue if you are not looking for income but if you are, this could be a concern. The company also has negative total cash flow in the most recent four quarters, which means it’s using more cash than it’s generating.
The stock is overpriced on a free cash flow basis, trading at a higher price compared to its peers and above the median for its sector.
About Canadian Solar Inc:
Canadian Solar Inc. (CSIQ:NSD) and its subsidiaries design, produce, and sell solar energy and battery storage products globally, including in Asia, the Americas, and Europe.
The company operates through two divisions: Canadian Solar Inc. (CSI) Solar and Global Energy. The CSI Solar division offers regular solar modules, battery storage, and ready-to-install solar system kits, as well as engineering and construction services. The Global Energy division is involved in developing, constructing, operating, and selling solar and battery storage projects, and also provides operation and maintenance services and asset management.
As of 2021, it has a portfolio of solar power plants with a total capacity of 445 MWp. The company serves customers such as distributors and project developers, and sells its products under the Canadian Solar brand name and as OEM products.
The company was founded in 2001 and is based in Guelph, Canada.
