Canadian Solar price target lowered to $50 from $70 at Roth MKM

Roth MKM lowered the firm’s price target on Canadian Solar to $50 from $70 but keeps a Buy rating on the shares. The company’s Q2 results were “mixed” and its FY23 revenue guidance was cut due to module average sales prices falling faster-than-expected, the analyst tells investors in a research note. The firm adds however that despite lower expected revenue, the company expects margin expansion and operating leverage to drive earnings growth in the coming quarters, and beyond the near-term weakness, Roth MKM sees upside for Canadian Solar from more long-term off-take agreements.