First Solar Positioned For Favorable Pricing, Revenue Visibility And Significant Market Share Growth, Says Analyst

  • Oppenheimer analyst Colin Rusch reiterated an Outperform rating on First Solar, Inc. FSLRraising the price target to $222 from $216.
  • The analyst believes First Solar is well-positioned to capture a significant share within the U.S. solar market with a significantly advantaged cost profile as it realizes operating leverage. 
  • The analyst notes that the company has the potential to announce additional capacity that could drive accelerated growth through 2023.  
  • Accordingly, the analyst adjusted First Solar's estimates for seasonality and modeled incremental earnings leverage. 
  • With the backlog reaching 71.6 GW through 2029 and representing 40% of FY26-27 capacity, the company's future bookings would prioritize multiyear contracts and favorable pricing to maximize the value of current capacity plans. This will also improve revenue visibility.
  • The company is also expected to benefit from additional project wins in emerging geographies, notably India and the Middle East.
  • Based on the above, Colin raised EPS estimates for FY23 from $7.28 to $7.41. FY24 revenue estimate remains at $4.58 billion, while EPS goes to $12.36 from $11.99.
  • Price Action: FSLR shares are trading lower by 9.71% at $181.33 on the last check Friday.
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