Analyst Ameet Thakkar from BMO Capital reiterated a Buy rating on First Solar (FSLR – Research Report) and decreased the price target to $230.00 from $260.00.
Ameet Thakkar has given his Buy rating due to a combination of factors that highlight First Solar’s potential for growth and value. Despite initial concerns over FY2025 guidance and warranty expenses, recent updates have alleviated these fears, showing that revenue projections are stronger than anticipated. This positive outlook on revenue should help ease the pressure on the stock price in the short term.
Additionally, while the gross margin guidance fell short of expectations, Thakkar believes that the factors affecting margins, such as higher logistics costs, are temporary. The company’s strategic position as a leading U.S. solar module producer under the Inflation Reduction Act (IRA) offers significant advantages, including increased earnings potential and backlog growth. These elements, combined with the expectation of higher booking volumes and premium pricing, support Thakkar’s optimistic view on First Solar’s stock.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $230.00 price target.