Yahoo Finance Canadian Solar Inc. (NASDAQ:CSIQ) Analysts Are More Bearish Than They Used To Be
Today is shaping up negative for Canadian Solar Inc. (NASDAQ:CSIQ) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the downgrade, the latest consensus from Canadian Solar's nine analysts is for revenues of US$7.7b in 2024, which would reflect a reasonable 5.8% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to plunge 39% to US$1.88 in the same period. Previously, the analysts had been modelling revenues of US$8.7b and earnings per share (EPS) of US$3.23 in 2024. Indeed, we can see that the analysts are a lot more bearish about Canadian Solar's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Canadian Solar
The consensus price target fell 9.2% to US$26.20, with the weaker earnings outlook clearly leading analyst valuation estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Canadian Solar's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2024 being well below the historical 23% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Canadian Solar.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Canadian Solar's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Canadian Solar.
There might be good reason for analyst bearishness towards Canadian Solar, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other concern we've identified.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
