This report is an updated version of the report published on 13 May 2025, at 7:20 AM PDT.

Canadian Solar Inc. (NASDAQ: CSIQ)

CSIQ is a renewable energy and solar technology firm specializing in the production of solar photovoltaic modules. It also offers solar energy and battery storage solutions and develops large-scale solar and battery storage projects. The company operates through two main divisions: Recurrent Energy and CSI Solar.

Recommendation Rationale – SELL at USD 11.16 

• Financial Highlights: CSIQ's net revenues for FY24 decreased by 21.28% YoY to USD 5,993.41mn, compared to USD 7,613.63mn in FY23. This decline was primarily driven by lower average selling prices (ASPs) for solar modules. Consequently, CSIQ reported a loss of USD 77.86mn in FY24, from the profit of USD 363.63mn in FY23.
• Trading Near the Resistance: CSIQ stock has surpassed its R2 level recommended on 23 April 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/EBITDA, Price/Earnings) are higher than the median of Energy Sector.
• Market Risk: For its energy solutions and project development business, risks include project delays, financing challenges, and changes in regulations affecting project viability.

CSIQ’s Daily Price Chart

Valuation Methodology: EV/Sales Approach (FY December'25E) (Illustrative)

Stock might trade at a slight discount to its peers considering the decreased revenue in FY24, negative bottom line, and project sales delay. For conducting the valuation, the following peers have been considered: SolarEdge Technologies Inc (NASDAQ: SEDG), Alpha and Omega Semiconductor Ltd (NASDAQ: AOSL), Penguin Solutions Inc (NASDAQ: PENG) and others have been considered.

Considering the target level attainments and increasing volatility over global equity market, a ‘Sell’ rating is assigned to the ‘CSIQ’ at the current market price of USD 11.16 as of 13 May 2025 at 07:20 AM PDT.                             

Canadian Solar Inc. (NASDAQ: CSIQ) is a part of Global Green Energy Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 13 May 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.