CSIQ Stock: The 1 Reason to Be Bullish on Canadian Solar Inc.

CSIQ StockIs CSIQ Stock Trading at a Discount?

Like all its peers, Canadian Solar Inc. (NASDAQ:CSIQ) was stuck in a waking nightmare after oil prices came tumbling down. Investors turned bearish on CSIQ stock during 2015, bringing it sharply back to Earth.

But recent success in overseas markets could bolster the company’s prospects. Three of its projects in Japan, capable of 6.2 MWp (megawatt peak) in output, became operational on February 8, 2016. The move is part of Canadian Solar’s plan to become a leading solar energy provider in the Asian markets. (Source: “Canadian Solar Energises Three Solar Power Plants in Japan,” Canadian Solar Inc., February 8, 2016.)

“The completion and commercial operation of the additional three solar projects, totaling 6.2 MWp, brings our total megawatts of projects in operation in Japan to approximately 21 MWp,” said CFO Dr. Shawn Qu. “We remain on track to execute on our plan to deliver more clean solar energy to the Japanese market.” (Source: Ibid.)

And yet, CSIQ stock is down 27% in the last 12 months.


Canadian Solar Targets Asia and Latin America

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Japan has a grim history with nuclear power, making it fertile ground for solar energy. The country has not forgotten the nuclear disaster of 2011. An earthquake-induced tsunami crashed onto Japan’s shores, crippling its power plant at Fukushima.

A loss of power was just the beginning. The nuclear plant had a massive radiation leak that drove more than 200,000 people from their homes. Like clockwork, the international media poured into the country to cover the disaster. They moved on soon after. (Source: “Some of Japan’s ‘nuclear refugees’ can finally go home — but they don’t want to,” Public Radio International, March 11, 2015.)

However, Japan was irrevocably altered. The country is now aiming for clean energy sources (like solar power) to outpace nuclear by 2030. (Source: “Japan Confirms Nuclear Energy to Supply a Fifth of Power by 2030,” Bloomberg, July 16, 2015.)

Canadian Solar could become a major beneficiary of this shift. The company now has a total of 21 MWp worth of operations in Japan, paving the way for more to come. Ultimately, oil price slump or not, the expansion could drive a huge recovery in CSIQ stock.