Needham & Company upgraded First Solar (NASDAQ: FSLR) from Hold to Buy with a price target of $75.00.

Analyst Y. Edwin Mok cited: : 1) a high likelihood of a FSLR yieldco thereby creating meaningful value; 2) positive metrics supporting greater growth trajectory ahead; 3) near-term opportunities created by the U.S. tariffs on Chinese modules; and 4) strong execution of efficiency roadmap.

"While 2Q14 results were weak due to lumpy timing of project revenue, we are not concerned and instead focused on the strong YTD bookings, increased expected revenue and long-term pipeline expansion, suggesting strengthening of FSLR's business," he said. "We recommend investors use any near-term weakness as a buying opportunity."

The firm trimmed 2014E EPS to $2.46, 2015E to $4.96, but raise 2016E to $4.91. "If FSLR decides to launch a yieldco, we expect EPS to come down but incremental value to be created by the improved monetization of projects," Mok said.

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Shares of First Solar closed at $63.66 yesterday.