Canadian Solar (NASDAQ: CSIQ) shares are soaring 5.62% in pre-market trading on Wednesday, despite recent price target cuts from analysts. The stock's surge comes on the heels of the company's fourth-quarter 2024 earnings report, which demonstrated resilience in a challenging market environment.
The solar technology and renewable energy company reported a return to profitability in Q4 2024, with an attributable profit of $33.9 million, or $0.48 per share, compared to a loss of $1.4 million in the same period last year. While total revenue for the year declined to $6 billion from $6.64 billion in 2023, Canadian Solar showed strength in its energy storage segment, achieving record shipments of 6.6 gigawatt hours for the full year, a staggering 500% increase year-over-year.
Investors appear to be focusing on the company's positive outlook for 2025, with management expecting margin improvements throughout the year. This optimism comes despite recent price target cuts from analysts, including Oppenheimer lowering its target to $23 from $25 and Citigroup reducing its target to $10 from $11. The market's reaction suggests that investors are valuing Canadian Solar's ability to navigate industry headwinds and its strong position in the growing energy storage market over short-term analyst concerns.
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