On Monday, Roth/MKM has maintained its Buy rating on First Solar (NASDAQ:FSLR) stock, with a steady price target of $320.00. The firm's stance comes amid expectations of limited new bookings in the second quarter, with anticipated booking average selling prices (ASPs) to be flat to slightly higher compared to approximately 31 cents per watt in the first quarter.
First Solar's narrative remains robust despite the growing concerns over a potential repeal of the Inflation Reduction Act (IRA), which had previously bolstered the stock's performance.
The company is seen as having the clearest route to benefit from the domestic content bonus and is deemed to be in the strongest position to cater to the U.S. market, especially as new Southeast Asia (SEA) anti-dumping/countervailing duty (AD/CVD) tariffs introduce a sense of uncertainty.
The analyst from Roth/MKM acknowledged the recent downturn in First Solar's stock value as a potential buying opportunity. However, they also noted the possibility that ongoing negative sentiment could persist in affecting the stock's performance.
Despite these challenges, the firm reasserted its confidence in First Solar with a reiterated Buy rating and a $320 price target, signaling its positive outlook on the company's prospects.
In other recent news, First Solar has been the subject of several significant developments. Susquehanna maintained a positive rating on First Solar and increased the shares target to $285, anticipating that the company will continue to benefit from strong average selling prices due to recent policy changes.
A potential expansion of manufacturing capabilities, contingent on the continuation of incentives provided by the Inflation Reduction Act, could significantly enhance First Solar's earnings.
Baird lowered First Solar's share price target to $307, aligning with the company's average selling price and cost per watt guidance, while Deutsche Bank raised First Solar's stock target to $280 based on estimated 2025 earnings per share.
Wells Fargo reaffirmed its Overweight rating for First Solar, citing the upward trend in market pricing for the company's products. Oppenheimer maintained an Outperform rating and raised the price target to $325, reflecting increased demand, particularly from large data center operators.
The U.S. International Trade Commission initiated an investigation into solar panel imports from Southeast Asian countries, which could potentially impact the cost of solar panels in the U.S. market.
Lastly, First Solar's products have been registered under the EPEAT environmental rating system, aligning with the Biden administration's mandate to prioritize sustainable products.
InvestingPro Insights
As Roth/MKM maintains its optimistic stance on First Solar (NASDAQ:FSLR), current InvestingPro data and tips provide additional context for investors considering this stock. First Solar holds a strong financial position, indicated by a significant market capitalization of $24.97 billion and a healthy P/E ratio of 23.79, reflecting investor confidence in its earnings potential. The company's robust revenue growth, at 27.28% over the last twelve months as of Q1 2024, underscores its expanding operations and market reach.
InvestingPro Tips highlight First Solar's liquidity advantage, with cash reserves surpassing debt, and liquid assets exceeding short-term obligations, suggesting financial resilience. Moreover, analysts are optimistic about the company's sales growth in the current year and predict profitability, which is corroborated by a solid gross profit margin of 43.05%. These factors, combined with a strong return over the last three months, at 32.55%, and a notable six-month price total return of 45.38%, signal underlying momentum in the company's stock performance.
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