First Solar price target lowered to $235 from $240 at Piper Sandler

Piper Sandler analyst Kashy Harrison lowered the firm’s price target on First Solar to $235 from $240 and keeps an Overweight rating on the shares. The analyst says equity prices within the utility-scale renewable sector have declined by 6%-25% since the largest renewable utility/developer reduced distribution targets for its YieldCo due to higher rates. While the utility/developer reiterated development plans, the market appears concerned about implications of higher rates toward industry growth, the analyst tells investors in a research note. Piper sees less 2024 risk given long project cycle times and constructive EIA project data. The stocks already imply muted longer-term growth rates, says the firm, which likes the earnings setup.