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Investing.com - Oppenheimer lowered its price target on Canadian Solar (NASDAQ:CSIQ) to $21.00 from $23.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock currently trades at a Price/Book multiple of just 0.31, suggesting potential undervaluation despite recent challenges.
The price target reduction follows Canadian Solar’s disappointing second-quarter results and guidance, which reflected expectations of moderating module demand in China during the second half of 2025 and project delays. The company’s gross profit margin stands at 15.7%, while revenue declined 19% in the last twelve months.
The solar company also recorded writeoffs on its PERC (Passivated Emitter and Rear Cell) assets as it phases out the technology, according to Oppenheimer’s research note.
Despite these challenges, Oppenheimer views Canadian Solar’s strategic shift away from maintaining module market share toward higher-margin storage and project businesses as "a net positive" for optimizing operational cash flow.
The research firm also expressed encouragement about strong demand for modules produced at the company’s Texas facility and Canadian Solar’s plans to comply with Foreign Entity of Concern (FEOC) regulations, while noting the company’s commitment to deleveraging amid geopolitical challenges and supply/demand imbalances. The stock has shown resilience with a 9.2% gain over the past week, though its debt-to-equity ratio remains elevated at 2.14.
In other recent news, Canadian Solar Inc. disclosed its financial performance for the second quarter of 2025, revealing a significant miss in both earnings and revenue. The company reported a loss of $0.53 per share, which was well below the anticipated earnings per share of $1.48. Additionally, revenue reached $1.7 billion, falling short of the expected $1.93 billion. These results have raised concerns among investors about the company’s future performance. While no mergers or acquisitions were announced, the earnings shortfall was the most prominent issue highlighted in the recent developments. Analyst reactions to these results have not yet been specified in detail. However, the financial community is likely to closely monitor Canadian Solar’s next moves in light of these figures. Investors may look for further guidance and strategic plans from the company to address these challenges.
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