Mizuho Upgrades Canadian Solar (CSIQ) to "Neutral," Sets Price Target at $19
Mizuho upgraded Canadian Solar from Underperform to Neutral with a $19 price target. The bank no longer views the "Prohibited Foreign Entity" status as a structural threat to the company and expects it to qualify for the 45X manufacturing tax credit. Canadian Solar's battery energy storage business has expanded its gross margin to 21%, and management expects shipments to reach 14-17 GWh by 2026. The company will report its second-quarter earnings on August 27, at which point its ability to formally lift the "Prohibited Foreign Entity" designation and maintain energy storage business margins will be key to the stock reaching $19.
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