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BofA Securities Downgrades First Solar (FSLR) to Neutral on Coming ASP Pressure

February 3, 2022 6:05 AM EST
Get Alerts FSLR Hot Sheet
Price: $167.45 --0%

Rating Summary:
    29 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 10
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BofA Securities analyst Julien Dumoulin-Smith downgraded First Solar (NASDAQ: FSLR) from Buy to Neutral with a price target of $91.00 (from $114.00) as it is increasingly seems likely that the Section 201 tariffs on bifacial panels will not be extended.

The analyst stated "FSLR has outperformed the TAN solar ETF index +12% trailing six months/+23% TTM but the future is less clear. With Section 201 potentially not applying to the majority of the US imports, FSLR’s pricing power may erode. FSLR recent backlog additions appear to point to flat/declining pricing for 2023+, likely leading to margin pressures. As an earlier example, the Lightsource BP deal was at similar price point as the previous 2023 backlog (~$0.30/watt). More recent transactions such as for the Israel developer Energix suggest ~$0.25/w ASP (Average Selling Price) in the 2023-2025 timeframe. As a result, we lower our 2023 ASP estimate -$0.01 to $0.27/w. Incremental delays in higher efficiency new products like CuRe would result in further ASP pressure."

For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.

Shares of First Solar closed at $76.37 yesterday.


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