Canadian Solar price target lowered to $26 from $30 at Citi

Citi lowered the firm’s price target on Canadian Solar to $26 from $30 and keeps a Neutral rating on the shares. The analyst says it is prudent to own solar installers in pairs given interest rate sensitivity and high volatility. A lack of a rebound post-summer in Europe and a sequential decline in U.S. demand points to a protracted inventory normalization timeline, which will now happen likely in Q1 of 2024 at the earliest, the analyst tells investors in a research note. The firm expects “another rough quarter” for residential solar companies but says utility-scale stocks should fare better. However, pricing across both utility-scale and residential sectors remains at risk of decline next year, contends Citi.