JPMorgan maintains Canadian Solar stock at Underweight, target $7

On Thursday, JPMorgan reaffirmed its Underweight rating on Canadian Solar Inc. (NASDAQ:CSIQ) with a steady price target of $7.00. Currently trading at $10.69, InvestingPro analysis suggests the stock is slightly undervalued. Canadian Solar recently reported first-quarter results that surpassed expectations, with a market capitalization of $715 million, attributed to higher-than-anticipated shipment volumes, reduced impact from tariffs, and project sales in Latin America.

The company has adjusted its full-year 2025 guidance downwards due to a strategic shift away from markets with lower profitability and delays in storage volumes resulting from ongoing trade negotiations. Operating with a significant debt burden, as evidenced by a debt-to-equity ratio of 1.94 and weak gross margins of 17.23%, Canadian Solar is exploring ways to adapt to potential changes in the Federal Energy and Environmental Competitiveness (FEOC) restrictions proposed in the draft budget reconciliation bill. The company suggests that altering its ownership structure might allow its facilities to qualify for the 45X manufacturing tax credits, although this remains uncertain as the bill progresses through Congress.

JPMorgan analysts have updated their estimates to align with Canadian Solar’s revised guidance, but their December 2025 price target for the company’s stock remains unchanged at $7.00. The analysts noted that while the first-quarter performance was strong, there are risks ahead that warrant close monitoring, especially concerning the legislative developments that could affect the company’s operations and financial incentives. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report for deeper analysis of Canadian Solar’s financial health and market position.

In other recent news, Canadian Solar Inc. reported first-quarter revenue of $1.2 billion, aligning with analyst expectations. However, the company faced a wider-than-expected adjusted earnings per share loss of $1.07, compared to the anticipated $0.88 loss. Despite this, Canadian Solar issued optimistic guidance, forecasting second-quarter revenue between $1.9 billion and $2.1 billion, surpassing the consensus estimate of $1.76 billion. For the full year 2025, the company expects revenue to range from $6.1 billion to $7.1 billion. Oppenheimer maintained an Outperform rating for Canadian Solar, with a price target of $23.00, highlighting the company’s strategic shift towards more conservative operations and its strong position in land and interconnections. Canadian Solar also filed a Form 6-K with the U.S. Securities and Exchange Commission, affirming its compliance with regulatory requirements. The filing included financial results for the first quarter of 2025, providing transparency to investors. Additionally, Canadian Solar’s gross margin of 11.7% exceeded its guidance range, although profitability was affected by lower storage sales and market challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.