UBS upgraded shares of Canadian Solar (NASDAQ:CSIQ) to Buy from Neutral, raising the price target to $50 from $48 per share in a note Thursday.
UBS analysts told investors that the company's holdings in CSI Solar A-shares are likely underappreciated by the market.
"With the stock currently pricing in just 17% of the value of the A-Shares, we see upside potential driven by a narrowing of the valuation gap," they wrote.
"Key catalysts include: 1) 2Q23 earnings, which will include the 2023 CSI Solar carve-out listing, and 2) potential for CSIQ buybacks in the long-term."
The analysts explained that while UBS continues to prefer more concentrated U.S. utility-scale renewables exposure, it believes CSIQ is "positioned to benefit from IRA incentives through its Recurrent Energy development business and planned 5GW module assembly facility in TX."