This Canadian penny stock has 194% upside, analyst says

Beacon Securities analyst Donangelo Volpe maintained a “Speculative Buy” rating and $2.00 target on Sparq Systems (Sparq Systems Stock Quote, Chart, News, Analysts, Financials TSXV:SPRQ) after the company announced its largest order to date for its Q2000 Quad Microinverters.

In a March 11 report, Volpe said Sparq received a purchase order for 60 megawatts of Q2000 microinverters, representing roughly 30,000 units to be deployed in India.

“We believe this order is associated with Sparq’s partnership with Reliance/Jio and signals that deployment activity may be ramping faster than previously anticipated, surpassing the minimum volume requirement of 25,000 units,” Volpe said.

Kingston, Ontario-based SPARQ Systems Inc. is a renewable-energy technology company that builds electronics used in solar power systems. Its primary business is designing microinverters and power-control technology for solar panels.

Volpe estimates the order could generate about $8-million in revenue, assuming near-term pricing of roughly $260 per unit, with fulfillment expected around the third quarter of 2026. Over the longer term, the analyst models pricing closer to $140 per unit as production scales.

“Importantly, it also represents meaningful validation of Sparq’s technology through adoption by one of the world’s largest telecom operators…”

The analyst  believes the order likely relates to solarization initiatives tied to Reliance Industries Limited and its telecom subsidiary Reliance Jio, potentially supporting solar deployment across telecom tower infrastructure.

Volpe estimates Reliance has roughly 200,000 telecom towers ready to be solarized, with the potential to expand to 300,000 towers as the company pursues net-zero emission targets by 2035. The analyst said the initial order could lead to additional purchases in late 2026 or early 2027.

“Importantly, it also represents meaningful validation of Sparq’s technology through adoption by one of the world’s largest telecom operators,” he said.

Volpe added that Sparq could also benefit from India’s “Make in India” policy framework, which prioritizes domestic manufacturing and local supply chains in the renewable energy sector. Beyond telecom infrastructure, he sees additional opportunities in India’s fast-growing residential rooftop solar market.

India installed 7.1 gigawatts of rooftop solar capacity in 2025, more than double the 3.2 gigawatts installed in 2024, with residential systems accounting for about 76% of new capacity, supported by the government’s PM Surya Ghar: Muft Bijli Yojana subsidy program.

Cumulative rooftop solar capacity reached about 21 gigawatts by the end of 2025, and Volpe estimates the market could expand to around 40 gigawatts by 2030.

Volpe also said Sparq appears attractively valued relative to peers. Based on his 2027 estimates, the company trades at roughly 0.6 times sales and 8.8 times EBITDA, compared with peer averages of about 2.4 times sales and 14.6 times EBITDA. He identified Enphase Energy as the closest comparable company.

Volpe forecasts Sparq will generate $2.0-million in revenue in fiscal 2025, increasing to $18.5-million in fiscal 2026, with Adjusted EBITDA of about $1.4-million expected in 2026 as commercialization ramps.

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