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Research Alert: CFRA Maintains Buy Opinion On Shares Of Canadian Solar Inc.
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Canadian Solar Inc.
May 10, 2024 11:54 AM

02:35 PM EDT, 05/10/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target by $5 to $19, or 8.4x our 2024 EPS estimate, which is in line with CSIQ's trailing-12-month average forward P/E of 8.5x. We lower our 2024 EPS view by $0.77 to $2.26 and our 2025 EPS forecast by $0.19 to $3.91. CSIQ posted Q1 adj. EPS of $0.19 vs. $1.19, $0.27 above consensus. The revenue guidance was disappointing, as it was brought down to $7.3 billion-$8.3 billion (vs. $8.5 billion-$9.5 billion previously), driven by a decline in estimated total module shipments, down to 35 GW-40 GW, vs. the prior guide of 42 GW-47 GW. We have underestimated how painful the current period of inventory destocking would ultimately be for the solar industry. Although we project continued demand weakness through most of 2024, we think we are getting closer to macroeconomic headwinds shifting from negative to positive. We think industry demand will return in 2025, driven by a drop in interest rates, more normal inventory levels, and power price inflation, which should boost solar module demand.

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