First Solar (FSLR) PT Lowered to $35.24 at GLJ Research; Shares a 'Ticking Time Bomb'

March 25, 2021 7:40 AM EDT
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Price: $78.57 -0.53%

Rating Summary:
    11 Buy, 20 Hold, 10 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 8 | New: 31
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GLJ Research analyst Gordon Johnson lowered the price target on First Solar (NASDAQ: FSLR) to $35.24 (from $38.40) while maintaining a Sell rating, and said shares look like a "ticking time bomb" that is set to erupt on 02/6/22.

Johnson notes First Solar's contract prices for PV modules are in rapid decline and its section 201 "protections" are at risk of being imminently lifted in February of next year.

Johnson commented, "Since the company reported 4Q20 results last month, we spent a lot of time digging through FSLR's 10-Ks, transcripts and earnings decks, as well as updating some of our expectations for the broader solar industry. After doing so, we: (i) estimate the company's contract prices for PV modules are $0.319/W in 2021 and $0.287/W in 2022, versus an average price of $0.338/W reported in 2020 (we detail below exactly how we got those prices), and (ii) believe an imminent 2/6/22 end to the Section 201 tariffs on solar panels will likely lead to a sharp drop in U.S. spot prices for PV modules (for some greater context, of FSLR's 8.7GW in shipments expected for 2022, ~31% are yet to enter contract)."

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