This Canadian Solar Analyst Is Bullish About A Bright Future, Citing IRA Incentives

Shares of Canadian Solar Inc CSIQ recovered during Thursday’s premarket, reversing its downturn since the start of the week.

The company is poised to benefit from its exposure to the US utility-scale solar market recovery, according to UBS.

The Analyst: Jon Windham upgraded the rating for Canadian Solar from Neutral to Buy, while raising the price target from $48 to $50.

The Thesis: The company’s Recurrent Energy solar and storage project development business is likely to generate 41% year-on-year revenue growth in 2023, Windham said in the upgrade note.

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Recurrent Energy’s revenue growth is “underpinned by an acceleration in U.S. utility scale solar installations from 15GW in 2022 to 21GW in 2023E,” he added.

Canadian Solar is also well positioned to “benefit from [Inflation Reduction Act] incentives through its Recurrent Energy development business and planned 5GW module assembly facility in TX,” the analyst further wrote.

CSIQ Price Action: Shares of Canadian Solar had risen by 1.84% to $38.27 in the premarket on Thursday.

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