Is Rising Short Interest in CSIQ Revealing Shifts in Canadian Solar’s Competitive Positioning?

• In the past week, Canadian Solar Inc saw its short interest as a percent of float rise by 12.09%, with 20.03% of its available shares sold short, more than double the sector average.
• This surge in short interest may signal a shift in investor sentiment, as Canadian Solar faces higher bearish positioning compared to its peers.
• We’ll now look at how a sharp increase in short interest could influence Canadian Solar’s investment narrative going forward.

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Canadian Solar Investment Narrative Recap

Being a Canadian Solar shareholder means believing in the company’s ability to capitalize on global electrification trends and battery storage expansion, as well as successfully scaling next-gen solar modules. The recent surge in short interest is a clear sign of rising bearish sentiment, but it does not fundamentally change the current short-term catalyst, strong demand for storage solutions, nor does it materially alter the biggest risk, which remains sustained pressure on module margins due to rising costs.

Canadian Solar’s September 2025 launch of next-generation Low Carbon modules, featuring higher output and a reduced carbon footprint, marks an important step in product innovation. This release directly supports the company’s growth catalyst of winning higher-value projects and potentially protecting margins, even as near-term cost challenges persist.

By contrast, investors should be mindful of risks tied to policy changes and U.S. tax credit uncertainty, as these...

Read the full narrative on Canadian Solar (it's free!)

Canadian Solar's outlook calls for $8.0 billion in revenue and $201.9 million in earnings by 2028. This projection is based on a 10.4% annual revenue growth rate and an earnings increase of $208.8 million from current earnings of -$6.9 million.

Uncover how Canadian Solar's forecasts yield a $21.76 fair value, a 20% downside to its current price.

Exploring Other Perspectives

Five Simply Wall St Community members assigned fair values for Canadian Solar ranging from US$7 to US$58.42 per share. While these opinions differ, many highlight ongoing pressure on module profitability and margins as critical factors shaping future outcomes.

Explore 5 other fair value estimates on Canadian Solar - why the stock might be worth over 2x more than the current price!

Build Your Own Canadian Solar Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Canadian Solar research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Canadian Solar research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Canadian Solar's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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