Canadian Solar’s ‘Messy’ Q4 Miss Triggers Citi Downgrade, But Retail Bulls Aren’t Backing Down

Shares of Canadian Solar Inc. (CSIQ) closed on a flat note during the after-hours trading session on Tuesday after the company’s fourth-quarter results missed estimates.

Canadian Solar reported a loss of $1.47 per share in Q4, while Wall Street expected a loss of $0.11 per share. The company posted a loss of $0.02 per share in the same period a year earlier.

Its revenue also came in below expectations – Canadian Solar posted sales of $1.52 billion in Q4, missing the $1.57 billion estimate, and falling from $1.7 billion in the year-ago period.

“2024 was a challenging year for the solar industry, with intense competition and ongoing policy and trade-related uncertainties creating operational and financial headwinds,” said Canadian Solar CEO Shawn Qu.

Qu acknowledged that near-to-mid-term uncertainties currently exist in the solar industry.

Analysts at Citi were less than impressed with Canadian Solar’s Q4 performance and commentary, according to The Fly. The brokerage called the results “messy” with several one-time items appearing in the reports.

Citi lowered its price target for Canadian Solar to $10 from $11 and maintained a ‘Sell’ rating on the stock.

Retail sentiment on Stocktwits around Canadian Solar defied analyst commentary, hovering in the ‘extremely bullish’ (91/100) territory.

One bullish user recommends investors to “be patient and enjoy another 3 months.”

However, not everyone is sold on the optimism, with one user offering an interesting analogy.

Koyfin data shows the average price target for Canadian Solar is $15.52, implying a 59% upside from Tuesday’s closing price.

Of the 10 brokerage calls, five either recommend ‘Buy’ or ‘Strong Buy,’ while there are four ‘Sell’ and ‘Strong Sell’ ratings. One brokerage has a ‘Hold’ recommendation.

Canadian Solar’s stock has declined more than 12% year-to-date.

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