First Solar Q2 Analysts Like What They See: New Factory In The US, 'Favorable India Update'

First Solar Inc FSLR reported on Thursday its second-quarter results and announced investments into building its fifth U.S. panel factory.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

BofA Securities On First Solar

Analyst Julien Dumoulin-Smith upgraded the rating from Neutral to Buy while raising the price target from $202 to $283.

First Solar's results exhibited better-than-expected execution, continued strength in bookings and pricing, as well as a "favorable India update," Dumoulin-Smith said in the upgrade note.

"The 2Q update cements FSLR's de-risked, above-avg outlook, contrasting Cleantech peer prints QTD which generally reflect higher EPS uncertainty amid increasingly turbulent macro backdrop," the analyst wrote. He added that he expects First Solar to outperform on outlook versus peers.

Oppenheimer On First Solar

Analyst Colin Rusch maintained an Outperform rating while raising the price target from $222 to $262.

“FSLR continues its impressive run of strong bookings while beginning to show the potential earnings power the company can enjoy under IRA provisions,” Rusch said in a note.

“We are encouraged by the company's commitment to a new factory in the U.S. and the incremental operating leverage it offers,” the analyst wrote. “We are also bullish on FSLR investing in incremental R&D efforts as we see the potential for the company to continuing to drive conversion efficiency improvements and factory throughput,” he added.

Check out other analyst stock ratings.

Goldman Sachs on First Solar

Analyst Brian Lee reiterated a Buy rating while lifting the price target from $272 to $292.

First Solar reported “strong” results for the second quarter, with both revenues and earnings exceeding expectations, Lee said in a note. “Bookings improved sequentially with strong/stable ASP,” he added.

The company also announced an investment of $1.1 billion in “a new 3.5GW U.S. facility — which is expected to commission in 1H26” and could “serve as a positive catalyst sooner than most had anticipated,” the analyst stated.

Morgan Stanley On First Solar

Analyst Andrew Percoco reaffirmed an Underweight rating and price target of $198.

“The revenue beat was driven by stronger panel shipments in 2Q and slightly higher ASPs, while gross margin improvement was attributable to lower freight costs,” Percoco wrote in a note. The company broadly reiterated its 2023 guidance, he added.

First Solar’s announcement to expand its manufacturing capacity by 3.5 GW is “broadly in line with our expectations,” the analyst stated.

Raymond James On First Solar

Analyst Pavel Molchanov maintained a Market Perform rating on the stock.

Investor excitement around First Solar is “overwhelmingly due to the Section 45X manufacturing incentive,” Molchanov said.

“As the new capacity in Ohio and India ramps up, there is an elevated risk of top line and (especially) margin shortfalls,” he added.

FSLR Price Action: Shares of First Solar had risen by 0.63% to $199.84 at the time of publication Friday.

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