Evaluating Canadian Solar: Insights From 5 Financial Analysts

Throughout the last three months, 5 analysts have evaluated Canadian Solar CSIQ, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Canadian Solar, presenting an average target of $17.26, a high estimate of $27.00, and a low estimate of $11.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 24.36%.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Canadian Solar's perception among financial experts is painted 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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Canadian Solar. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Canadian Solar compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Canadian Solar's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Canadian Solar's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Delving into Canadian Solar's Background

Canadian Solar Inc is a Canadian solar power company. It is an integrated provider of solar power products, services, and system solutions. The company engages in designing, developing, and manufacturing solar ingots, wafers, cells, modules, and other solar power products. It operates through two business segments CSI Solar and Recurrent Energy segment. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. Its Recurrent segment primarily comprises solar and battery storage project development and sale, O&M and asset management services for operational projects, sale of electricity, and investment in retained assets.

Canadian Solar: A Financial Overview

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 3 months period, Canadian Solar faced challenges, resulting in a decline of approximately -30.82% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Canadian Solar's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.23% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.15%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Canadian Solar's ROA stands out, surpassing industry averages. With an impressive ROA of 0.03%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.86, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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