Analyst upgrades First Solar to Buy with 52% price target increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2024
0mins
Source: Benzinga
First Solar shares have surged 3.05%, reaching a 52-week high of $300.86, reflecting strong investor confidence.
The stock's rise is attributed to GLJ Research analyst Gordon Johnson upgrading First Solar's rating from hold to buy and raising the price target by 52% from $207.82 to $315, indicating strong confidence in the company's growth potential. Additionally, the launch of the Series 6 CuRe Copper Replacement program at its Ohio manufacturing campus is expected to enhance production capacity and improve competitive positioning.
This upgrade, combined with the company's solid financial health and growth in revenue and free cash flow, positions First Solar as a compelling investment opportunity despite potential short-term challenges in the policy environment.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 254.800
Low
150.00
Averages
280.35
High
335.00
Current: 254.800
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 464 watts and 532 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Policy Headwinds Impacting Solar Stocks
- Policy Headwinds: Uncertainty in the policy environment may be weighing on solar stocks like First Solar and Enphase Energy, leading investors to adopt a cautious stance regarding short-term performance, which could result in stock price volatility.
- Long-Term Demand Outlook: Despite facing policy challenges, the long-term demand for renewable energy remains robust, with expectations for growth in the solar industry over the coming years, particularly as global emphasis on clean energy continues to rise.
- AI-Driven Power Needs: The rapid advancement of artificial intelligence technology may create new growth opportunities for solar companies, especially in the application of smart grids and energy management systems, which could reshape energy consumption patterns.
- Company-Specific Strengths: The technological innovations and market positioning of First Solar and Enphase Energy may allow them to stand out in the competitive landscape, potentially capturing larger market shares in the evolving market environment.
See More
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- Market Outlook: As AI data centers increase power demand, the market for solar energy may rise rapidly, creating attractive opportunities for investors willing to stomach policy and execution risks.
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- Focused Solar Industry: The Invesco Solar ETF targets solar equipment and project development with 32 stocks, currently priced at $61.83; despite a higher expense ratio of 0.70%, it has gained about 25% this year, appealing to investors seeking specific solar exposure.
- ESG-Friendly Investment: The SPDR S&P 500 ESG ETF tracks the S&P 500 ESG Index, excluding companies that do not meet ESG criteria, priced at $71.73 with a low expense ratio of 0.10%, ideal for investors looking to balance ESG principles in their portfolios.
- Market Volatility Consideration: While these ETFs offer diverse investment strategies, investors should be aware of the volatility in clean energy and solar sectors, as policy changes and market factors can significantly impact investment returns.
See More
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- iShares Global Clean Energy ETF: This ETF tracks the S&P Global Clean Energy Transition Index with 105 holdings and an expense ratio of 0.39%, providing investors with easy access to leaders in the clean energy sector, ideal for those seeking global exposure.
- Invesco Solar ETF: Focused on the solar industry, this ETF tracks the MAC Global Solar Energy Index with 32 stocks and a 0.70% expense ratio; despite its higher costs, it has gained about 25% this year, making it suitable for investors targeting solar investments.
- ESG-Friendly Investment: Another ETF tracks the S&P 500 Scored & Screened Index with a 0.10% expense ratio, excluding companies that do not meet ESG criteria, offering broad exposure to large-cap U.S. equities while appealing to ESG-conscious investors.
- Market Volatility Considerations: The clean energy and solar sectors are significantly affected by policy changes and market fluctuations, necessitating careful risk assessment by investors, particularly those seeking stable income, as these high-volatility assets may not be suitable.
See More
First Solar and Quanta Services Report Strong Earnings
- First Solar Expansion Investment: First Solar plans to invest $0.8 to $1.0 billion in 2026 to ramp up production capacity, with total installed nameplate capacity expected to reach approximately 23 GW by December 31, 2025, thereby enhancing its competitive position in the global PV market.
- Sales Performance Growth: In Q1 2026, First Solar manufactured 4.3 GW and sold 3.8 GW of solar modules, indicating strong market demand and production capability, which is likely to attract more growth investors in the future.
- Quanta Services Earnings Beat: Quanta Services reported Q1 2026 earnings and revenues that exceeded Zacks Consensus Estimates by 31.4% and 12.6%, respectively, with year-over-year increases of 50.6% and 26.3%, reflecting strong execution in the electric and gas infrastructure sectors.
- Strong Backlog: Quanta Services ended Q1 with a record backlog of $48.5 billion, up 37.5% from last year, including a 12-month backlog increase of 45.4%, indicating strong revenue visibility for the coming years.
See More
Policy Headwinds Impacting Solar Stocks
- Policy Headwinds: Uncertainty in the policy environment may be weighing on solar stocks like First Solar and Enphase Energy, leading investors to adopt a cautious stance regarding short-term performance, which could result in stock price volatility.
- Long-Term Demand Outlook: Despite facing policy challenges, the long-term demand for renewable energy remains robust, with expectations for growth in the solar industry over the coming years, particularly as global emphasis on clean energy continues to rise.
- AI-Driven Power Needs: The rapid advancement of artificial intelligence technology may create new growth opportunities for solar companies, especially in the application of smart grids and energy management systems, which could reshape energy consumption patterns.
- Company-Specific Strengths: The technological innovations and market positioning of First Solar and Enphase Energy may allow them to stand out in the competitive landscape, potentially capturing larger market shares in the evolving market environment.
See More
Solar Investment Opportunities Amid Policy Headwinds
- Policy Impact Analysis: While policy headwinds negatively affect solar stocks like First Solar and Enphase Energy, long-term demand and AI-driven power needs could shift this outlook, presenting potential returns for investors.
- Market Outlook: As AI data centers increase power demand, the market for solar energy may rise rapidly, creating attractive opportunities for investors willing to stomach policy and execution risks.
- Investor Selection Advice: Although Enphase Energy was not recommended by The Motley Fool Stock Advisor, analysts believe there are ten other stocks that could yield substantial returns in the coming years, highlighting the diversity of investment choices.
- Historical Return Comparison: Early investors in Netflix and Nvidia saw returns of 438,283% and 1,257,427% respectively, indicating that selecting stocks at the right time can lead to significant financial gains.
See More
First Solar and e.l.f. Beauty Show Active Options Trading
- First Solar Options Volume: First Solar Inc's options trading volume reached 17,582 contracts today, representing approximately 1.8 million shares, which is 57.8% of its average daily trading volume over the past month, indicating significant market interest in the stock.
- High Put Option Activity: Within First Solar, the $250 strike put option expiring on January 21, 2028, has seen 2,000 contracts traded today, equating to about 200,000 shares, suggesting an increased expectation among investors for a potential decline in the stock price.
- e.l.f. Beauty Options Activity: e.l.f. Beauty Inc recorded an options trading volume of 23,854 contracts, representing approximately 2.4 million shares or 50.9% of its average daily trading volume over the past month, highlighting the stock's active trading environment.
- Call Option Trading Volume: For e.l.f. Beauty, the $70 strike call option expiring on June 18, 2026, has seen 5,502 contracts traded today, representing about 550,200 shares, reflecting a bullish sentiment in the market regarding the stock's future performance.
See More
Overview of Green ETF Investments
- Global Clean Energy ETF: The iShares Global Clean Energy ETF tracks the S&P Global Clean Energy Transition Index with 105 holdings, priced at $20.63 and an expense ratio of 0.39%, offering broad investment opportunities in clean energy suitable for long-term holders.
- Focused Solar Industry: The Invesco Solar ETF targets solar equipment and project development with 32 stocks, currently priced at $61.83; despite a higher expense ratio of 0.70%, it has gained about 25% this year, appealing to investors seeking specific solar exposure.
- ESG-Friendly Investment: The SPDR S&P 500 ESG ETF tracks the S&P 500 ESG Index, excluding companies that do not meet ESG criteria, priced at $71.73 with a low expense ratio of 0.10%, ideal for investors looking to balance ESG principles in their portfolios.
- Market Volatility Consideration: While these ETFs offer diverse investment strategies, investors should be aware of the volatility in clean energy and solar sectors, as policy changes and market factors can significantly impact investment returns.
See More
Analysis of Clean Energy ETF Market
- iShares Global Clean Energy ETF: This ETF tracks the S&P Global Clean Energy Transition Index with 105 holdings and an expense ratio of 0.39%, providing investors with easy access to leaders in the clean energy sector, ideal for those seeking global exposure.
- Invesco Solar ETF: Focused on the solar industry, this ETF tracks the MAC Global Solar Energy Index with 32 stocks and a 0.70% expense ratio; despite its higher costs, it has gained about 25% this year, making it suitable for investors targeting solar investments.
- ESG-Friendly Investment: Another ETF tracks the S&P 500 Scored & Screened Index with a 0.10% expense ratio, excluding companies that do not meet ESG criteria, offering broad exposure to large-cap U.S. equities while appealing to ESG-conscious investors.
- Market Volatility Considerations: The clean energy and solar sectors are significantly affected by policy changes and market fluctuations, necessitating careful risk assessment by investors, particularly those seeking stable income, as these high-volatility assets may not be suitable.
See More
First Solar and Quanta Services Report Strong Earnings
- First Solar Expansion Investment: First Solar plans to invest $0.8 to $1.0 billion in 2026 to ramp up production capacity, with total installed nameplate capacity expected to reach approximately 23 GW by December 31, 2025, thereby enhancing its competitive position in the global PV market.
- Sales Performance Growth: In Q1 2026, First Solar manufactured 4.3 GW and sold 3.8 GW of solar modules, indicating strong market demand and production capability, which is likely to attract more growth investors in the future.
- Quanta Services Earnings Beat: Quanta Services reported Q1 2026 earnings and revenues that exceeded Zacks Consensus Estimates by 31.4% and 12.6%, respectively, with year-over-year increases of 50.6% and 26.3%, reflecting strong execution in the electric and gas infrastructure sectors.
- Strong Backlog: Quanta Services ended Q1 with a record backlog of $48.5 billion, up 37.5% from last year, including a 12-month backlog increase of 45.4%, indicating strong revenue visibility for the coming years.
See More
