Assessing Canadian Solar: Insights From 4 Financial Analysts

Throughout the last three months, 4 analysts have evaluated Canadian Solar CSIQ, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $9.25, with a high estimate of $11.00 and a low estimate of $8.00. This current average represents a 4.34% decrease from the previous average price target of $9.67.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Canadian Solar among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Canadian Solar. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Canadian Solar compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Canadian Solar's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Canadian Solar's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Get to Know Canadian Solar Better

Canadian Solar Inc is a Canadian solar technology and renewable energy company. It is a manufacturer of solar photovoltaic modules, a provider of battery energy storage solutions, and a developer of utility-scale solar power and battery energy storage projects.. It operates through two business segments CSI Solar and Recurrent Energy segment. The CSI Solar segment focused on solar modules and battery energy storage manufacturing and products. Its Recurrent segment focused on utility-scale solar power and battery energy storage project development and operation. Key revenue is generated from CSI Solar segment.

Key Indicators: Canadian Solar's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3M period, Canadian Solar faced challenges, resulting in a decline of approximately -10.62% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.23%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Canadian Solar's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.19% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Canadian Solar's ROA stands out, surpassing industry averages. With an impressive ROA of 0.25%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Canadian Solar's debt-to-equity ratio stands notably higher than the industry average, reaching 2.1. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.