- GLJ Research has upgraded First Solar Inc FSLR from Sell to Hold with a price target of $157.56.
- First Solar said in its Q1 earnings conference call that based on the current form factor of its modules, it expects to benefit from approximately $0.17 per watt for each module sold as part of the inflation reduction act.
- For the made-in-the-USA modules, FSLR plans to sell in out years, of the $0.23/watt in costs it reported in Q1, due to taxpayer welfare/handouts in the inflation reduction act (IRA), $0.17/watt of that will be paid for by the U.S. government, said the analyst.
- With solar prices in free-fall due to record excesses, the question is at what price is FSLR at risk of seeing customers renege on its long-term contracts, and will we see those prices, in the U.S. market, this year.
- The analyst thinks the story of First Solar is still strong and many details around the IRA bill are still unknown to make a clear pitch on growth.
- The analyst added that the company’s $21.7 billion market cap is making it an easy play for large money-managers who want renewable/solar/ESG exposure.
- Yet, given the analyst’s view that the solar industry will be plagued by a rerating lower of valuation multiples, while the analyst expects FSLR to outperform its peers, there still is a chance of it ending the year lower.
- Also Read: Renewables Revolution: US Green Energy Poised for 'Staggering' Growth, According To BloombergNEF Report
- Price Action: FSLR shares are trading lower by 1.10% at $206.44 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
