Summary

  • Broker BMO upgraded First Solar to ‘outperform’ from ‘market perform’ rating on September 14, 2023.
  • FSLR has a mean recommendation rating of 2.2 on five and a consensus mean price target of US$246.01.
  • First Solar’s net income in Q2 2023 was US$170.58 million, higher than Q2 2022’s net income of US$42.56 million.

Semiconductor manufacturer First Solar Inc. (NASDAQ: FSLR) received a rating upgrade from broker BMO. The broker upgraded FSLR to ‘outperform’ from ‘market perform’, while maintaining its price target of US$237.

As per EODHD/Others data, FSLR has a mean recommendation rating of 2.2 on five. Here, one depicts a ‘strong buy’ rating and five represents a ‘strong sell' rating. At the same time, FSLR’s consensus mean price target is US$246.01, an upside of around 38% over Thursday’s closing price.

EODHD/Others data also shows that 27 analysts have covered the stock, among which, 17 gave it a ‘buy’ or ‘strong buy’ rating. The other 10 analysts believe the stock is a ‘hold’. None of the analysts believe FSLR to be a ‘sell’ or ‘strong sell’.

FSLR Price Chart; Source: EODHD/Others

Meanwhile, the stock closed around 18% higher on a YTD basis on Thursday. The stock’s intraday gains as per its closing price of US$177 on September 14, 2023, were 3.8%.

Brokers believe FSLR is a ‘moderate-buy’

As per data available on EODHD/Others, twelve analysts have given the stock a ‘buy’ or ‘moderate buy’ rating. This includes Piper Sandler Companies, that upgraded the stock to an ‘overweight’ rating on September 11, 2023.

Roth MKM also upgraded FSLR to a ‘buy’ rating and retained a price target of US$230 on it. Susquehanna Financial Group also increased its rating to ‘positive’ on the stock and maintained a price target of US$261.

Image source: ©2023 Kalkine®; Data source: EODHD/Others

More recently, TD Cowen upped its rating on the stock to ‘outperform’, while keeping a price target of US$293. Meanwhile, Wells Fargo also renewed its rating on FSLR to ‘overweight’ on September 14, 2023.

Alternatively, Guggenheim and Oppenheimer upgraded FSLR to ‘buy’ and ‘outperform’ ratings, respectively on September 8, 2023.

BMO sees an “attractive entry point” in FSLR

Brokerage BMO stated that FSLR’s recent weakness offers a “particularly attractive entry point” into it.

The broker also believes that First Solar’s current backlog combined with its average selling prices and production tax credit leverage present “substantially better visibility” as compared to its peers.

Additionally, BMO sees FSLR steadily building sales volumes at average selling prices around its currently achieved prices. As per BMO, FSLR is expected to sell at these prices despite global prices for solar modules falling.

First Solar reported an uptick in its operating income of US$168.51 million in Q2 2023, compared to Q2 2022. Meanwhile, its net income was US$170.58 million in Q2 2023, higher than Q2 2022’s net income of US$42.56 million.