Is CSIQ a good stock to buy? We came across a bullish thesis on Canadian Solar Inc. on EAA Partners’s Substack. In this article, we will summarize the bulls’ thesis on CSIQ. Canadian Solar Inc.’s share was trading at $17.16 as of June 5th. CSIQ’s trailing and forward P/E were 29.90 and 21.51 respectively according to Yahoo Finance.
Soonthorn Wongsaita/Shutterstock.com
Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in Asia, the United States and internationally. CSIQ is presented as a structurally complex vertically integrated solar and energy storage platform generating approximately $5.5 billion in annual revenue, yet trading at a fraction of book value due to the market’s difficulty in pricing its three distinct businesses: CSI Solar manufacturing, CS PowerTech U.S. manufacturing ramp, and Recurrent Energy project development.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The investment thesis centers on the idea that the current valuation compresses three simultaneously stressed but potentially mean-reverting segments into a single depressed equity, creating a mispricing driven by temporary margin pressure, delayed project monetisation, and heavy capital expenditure rather than permanent structural impairment.
CSI Solar is undergoing a transition from commoditised Chinese module manufacturing toward higher-margin U.S. production through CS PowerTech, including a $1.3 billion 2026 capex program that builds HJT cell and module capacity in Indiana, Texas, and Kentucky. This shift positions Canadian Solar to capture IRA 45X manufacturing credits and FEOC-compliant demand, creating a structurally higher-margin domestic business once fully ramped.
Recurrent Energy adds a second engine through a 24 GW solar and 83 GWh storage pipeline, with $3.5 billion backlog providing visibility and monetisation potential via asset sales and long-term contracted power revenues. Meanwhile, e-STORAGE, with its $3.5 billion backlog and rapidly expanding utility-scale footprint, represents the highest-growth segment benefiting from secular grid storage demand driven by data centre load growth and energy transition needs.
Despite near-term headwinds, including margin compression and elevated $6.4 billion debt, the bullish case argues these pressures are cyclical and transitional. If execution holds, including timely Jeffersonville HJT ramp, Recurrent Energy asset sales of $800 million–$1.2 billion annually, and continued storage backlog expansion, Canadian Solar’s consolidated revenue could re-rate toward $8.5–$9 billion by FY2028. Under a 5x–6x EV/revenue multiple, this implies a potential 2–3x upside from current levels, driven by manufacturing re-rating, storage franchise recognition, and balance sheet deleveraging, making CSIQ a high-risk but asymmetric upside opportunity.
Previously, we covered a bullish thesis on Canadian Solar Inc. (CSIQ) by Koneko Research in December 2024, which highlighted an 87% SOTP discount, CSI Solar profitability strength, and Recurrent Energy’s long-term monetisation and IPO potential. CSIQ’s stock price has appreciated by approximately 48.95% since our coverage. EAA Partners shares a similar view but emphasizes U.S. manufacturing ramp, IRA 45X credits, and e-STORAGE backlog-led growth as key re-rating drivers.
Canadian Solar Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held CSIQ at the end of the first quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of CSIQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSIQ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
