JPMorgan's 'Awkward' Downgrade Of First Solar: Analysts Will Meet With Management Soon

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JPMorgan’s Paul Coster downgraded the rating for First Solar, Inc. FSLR from Overweight to Neutral, while maintaining a price target of $69. He said that the company’s shares had gained 8.9 percent year-to-date, versus a 5.5 percent decline in the S&P500.

First Solar is among the highest quality stocks in the Solar segment, but its risk-reward trade off appears to be balanced at present, analyst Paul Coster said. The company continues to have a robust balance sheet and its fundamentals are expected to remain solid over the 2016-2018 period.

The company’s utility-scale thin film PV solar technology differentiates it in a commodity-like-module market, besides providing it with a sustainable competitive advantage. First Solar is scheduled to hold its Annual Analyst Day on April 5 and provide details of its technology roadmap and product development pipeline.

First Solar’s shares are not only trading at a justified premium to its peer group, but also at the top-end of its 5-year trading range, Coster pointed out.

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Posted In: Analyst ColorDowngradesAnalyst RatingsJPMorganPaul Coster
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