UPDATE: Piper Sandler Upgrades First Solar (FSLR) to Overweight, Sees Revs Up 80% Through 2024

May 12, 2022 4:06 PM EDT
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Price: $65.77 -1.05%

Rating Summary:
    12 Buy, 25 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
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(Updated - May 13, 2022 9:08 AM EDT)

Piper Sandler analyst Kashy Harrison upgraded First Solar (NASDAQ: FSLR) from Neutral to Overweight on the belief that recent bookings momentum, driven by AD/CVD investigation, provides strong volume/pricing visibility through '24.

In conjunction with the upgrade, the analyst also raised the price target to $90.00 (from $80.00), stating "we view '22 as a trough margin year and see the potential for improving COGS as logistics normalize, new contracting structures de-risking margins manifest in '23/'24, and startup expenses associated with facility construction subside. Accordingly, we believe revs/EBITDA could grow from $2.4/$0.1B in '22 to $4.3/$1.2B by '24. Undoubtedly, FSLR is benefiting from the AD/CVD investigation; however, our upgrade is not a call on a tariff
outcome as FSLR could have pricing/volume visibility through much of '25 by the time a preliminary tariff is announced in August. Finally, FSLR possesses option value if an energy bill is passed (lower probability... excluded from valuation). At 4.5x '24 EV/EBITDA with $1.1B of net cash expected at YE'22, we like FSLR's lower risk multi-year earnings growth outlook."

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 $61.72 yesterday.


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