As it stands on its own, First Solar, Inc. FSLR looks pretty, but an unsightly backdrop lessens its appeal.
One analyst is buying — cautiously.
The Rating
JPMorgan analyst Paul Coster upgraded First Solar from Neutral to Overweight and increased the price target from $74 to $85.
The Thesis
After assessing the value of First Solar’s market-leading Series 6 product, JPMorgan considers the stock bound between $60 and $110 and advocates strategic buying and selling as shares fluctuate through the end of 2019.
“We believe FSLR’s earnings growth is rangebound by the absence of pricing power in a global commodity market, despite strong industrywide unit growth for the foreseeable future and excellent revenue and earnings visibility at FSLR itself,” Coster said in a Thursday note.
First Solar is a best-in-class company and the highest-quality solar stock, the analyst said. As shares linger near the lower end of the range, JPMorgan is buying.
Price Action
First Solar was trading up 4.95 percent at $72.87 at the time of publication Thursday.
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Photo courtesy of First Solar.
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