Canadian Solar: Strong Growth Potential Despite Price Target Reduction

UBS analyst Jon Windham maintained a Buy rating on Canadian Solar today and set a price target of $15.00.

Jon Windham has given his Buy rating due to a combination of factors that highlight Canadian Solar’s potential for growth and profitability. The company’s recent financial performance, particularly the strong results in the second quarter of 2025, has led to an upward revision of its adjusted EBITDA estimates for the years 2025 to 2027. These revisions are primarily driven by increased shipments from the U.S. module and energy storage systems, which contribute positively to the company’s revenue outlook.
Moreover, despite a reduction in the price target from $17 to $15, the stock continues to trade at a discount to UBS’s sum-of-the-parts valuation. This suggests that there is still significant upside potential for investors. Additionally, the transition of Recurrent Energy towards a hybrid developer/IPP model is expected to support its growth trajectory, further reinforcing the Buy rating. Overall, while acknowledging the high-risk nature of the investment, the potential rewards make Canadian Solar an attractive option for investors.