FSLR - Canadian Solar: Overstated Tariff Fears Offer Excellent Pay-Off

2024-04-24 12:15:54 ET

Summary

• Canadian Solar is one of the largest solar panels manufacturer in the world.
• The company's subsidiary, Recurrent Energy, secured a $500m investment from BlackRock, providing financial and reputational value.
• CSIQ faces risks due to its heavy dependence on China for production and potential tariffs on Chinese imports, but the company is taking steps to mitigate these risks.

Canadian Solar ( CSIQ ) is a Canadian company, the fifth largest solar panels manufacturer globally with shipments totaling 30.7GW in FY23 and a nameplate capacity of 57GW as of December 2023. Through its subsidiary Recurrent Energy, it is also involved in the development and sale of solar and battery storage systems, O&M, as well as electricity sales through its proprietary PV generation facilities. The stock price of CSIQ declined by 60% from April 2023 to April 2024, mainly due to concerns related to new tariffs on U.S. imports of Chinese-manufactured solar panels and the challenging environment of high interest rates, which represent significant headwinds for the company....

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