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Investing.com - Mizuho (NYSE:MFG) has lowered its price target on Canadian Solar (NASDAQ:CSIQ) to $15.00 from $17.00 while maintaining an Outperform rating following the company’s mixed second-quarter 2025 earnings results. The stock has fallen sharply, declining over 17% in the past week, with InvestingPro data showing concerning fundamentals including weak profitability metrics and significant debt levels.
Canadian Solar reported revenue that missed guidance due to delayed project sales and energy storage shipments, though gross margin showed upside driven by U.S. sales mix and a one-time project sale.
The company’s storage shipments are expected to increase in the second half of 2025 due to tariff clarity, but management guided third-quarter results below estimates and reduced its full-year 2025 guidance.
The guidance reduction stems from lower solar shipments as the company pulls back from less-profitable markets, along with weaker gross margins across its business due to rising upstream solar costs in China and normalizing storage gross margins.
Mizuho reduced its sum-of-the-parts based price target by 12% to $15, citing lower gross margins and reduced solar sales, while noting it still awaits updates on Canadian Solar’s strategy to make its U.S. factory compliant with Foreign Entity of Concern (FEOC) regulations next year.
In other recent news, Canadian Solar Inc. reported its second-quarter financial results for 2025, showing a significant shortfall in both earnings per share and revenue compared to market expectations. The company posted a loss of $0.53 per share, which was well below the forecasted earnings of $1.48 per share. Revenue for the quarter was $1.7 billion, missing the anticipated $1.93 billion. These results have raised concerns among investors about the company’s financial health and future guidance. Additionally, Oppenheimer has lowered its price target for Canadian Solar from $23.00 to $21.00, while maintaining an Outperform rating. This adjustment comes in response to Canadian Solar’s disappointing second-quarter results and guidance, which highlighted expectations of declining module demand in China and project delays. These developments reflect ongoing challenges for the company in a competitive market environment.
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