Friday, December 07, 2018 11:30:56 AM
By Chris Lange December 4, 2018 1:05 pm EST
First Solar Inc. (NASDAQ: FSLR) shares slid on Tuesday despite the solar firm receiving a couple favorable upgrades from analysts. Even though the share price has dropped off recently, one firm believes that this stock could rise handily from here.
Argus upgraded First Solar to a Buy rating from Hold with a $60 price target, implying upside of 29% from the most recent closing price of $46.40. And on Monday, Goldman Sachs raised First Solar to a Neutral rating from Sell and raised its price target to $46 from $39.
Back in late October, the company reported third-quarter net sales of $676 million, up from $309 million in the second quarter, but down from $1.1 billion a year earlier. The sequential increase reflected ongoing construction at the California Flats project and the sale of the Willow Springs and Manildra projects. The company reported third-quarter earnings of $0.54 per share, compared to a loss of $0.46 per share in the second quarter and earnings of $1.95 per share in the third quarter of last year. The decline from last year reflected fewer solar projects and a decline in module prices.
Argus views First Solar as well positioned in the solar industry based on its positive cash flow, solid balance sheet and focus on cadmium telluride technology, which should provide a cost advantage relative to more commoditized technologies like polysilicon. In particular, First Solar’s technological investments have enabled the company to lower the cost of solar generation on a per-watt basis and to improve its conversion efficiency. They also have helped the company to expand its opportunity set of utility-scale projects.
Overall, Argus noted that the stock trades at 15.5 times its 2019 per-share earnings forecast, in the lower half of the historical average range of 4.5 to 37.7 and below the peer average of 24.9. Investors should expect First Solar’s financial results to be uneven on a quarter-to-quarter and year-to-year basis due to the timing of revenue recognition.
While First Solar has underperformed over the past three months, falling 13%, Argus believes that this pullback offers a favorable entry point.
Shares of First Solar were last seen down 2% at $45.44, in a 52-week range of $36.51 to $81.72. The consensus analyst price target is $65.92.
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Recent FSLR News
- Responsible Solar: First Solar Leads Industry with Validated Environmental and Social Performance and Transparent Reporting • Business Wire • 09/09/2024 01:00:00 PM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/14/2024 09:56:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:51:14 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/13/2024 04:25:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/08/2024 09:27:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 08:01:54 PM
- AMD Shares Surge 9% on Earnings Beat; Match Group Rises 10%, Pinterest & Lemonade Drop 13%, and More Earnings Updates • IH Market News • 07/31/2024 09:59:10 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/30/2024 08:07:28 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/30/2024 08:04:48 PM
- First Solar, Inc. Announces Second Quarter 2024 Financial Results • Business Wire • 07/30/2024 08:00:00 PM
- U.S. Futures Climb Before Fed Meeting; Oil Prices Drop on China Demand Worries • IH Market News • 07/30/2024 10:06:14 AM
- First Solar Announces Ownership of TOPCon Technology Patents, Undertakes Infringement Investigation • Business Wire • 07/19/2024 12:30:00 PM
- First Solar Commissions Western Hemisphere’s Largest Solar R&D Center • Business Wire • 07/18/2024 12:30:00 PM
- First Solar, Inc. to Announce Second Quarter 2024 Financial Results on July 30, 2024 • Business Wire • 07/02/2024 09:35:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/20/2024 02:13:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:34:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:32:57 PM
- First Solar becomes the Solar Industry’s First EPEAT Climate+ Champion, Setting Global Standard for Ultra-Low Carbon Solar • Business Wire • 06/04/2024 01:05:00 PM
- 5N Plus inc. renouvelle et élargit son entente d'approvisionnement de semiconducteurs avec First Solar • PR Newswire (Canada) • 06/04/2024 11:30:00 AM
- 5N Plus Inc. Renews and Increases Semiconductor Supply Agreement with First Solar • PR Newswire (Canada) • 06/04/2024 11:30:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/03/2024 05:46:55 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/03/2024 04:05:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 11:14:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 11:12:31 PM
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