UPDATE: Piper Sandler Upgrades First Solar (FSLR) to Overweight, Sees Revs Up 80% Through 2024
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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."
Shares of First Solar closed at $61.72 yesterday.
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