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Deutsche Bank: 3 Reasons To Remain Bullish On First Solar

Deutsche Bank: 3 Reasons To Remain Bullish On First Solar

First Solar, Inc. (NASDAQ: FSLR) shares sold off Friday despite a bottom-line quarterly beat and increase in annual guidance — but Deutsche Bank is still buying.

The Rating

Analyst Vishal Shah maintained a Buy rating on First Solar with a $75 price target.

The Thesis

Deutsche Bank considers the company’s annual revenue guidance conservative even after the raise. By Shah’s assessment, three conditions justify continued optimism:

  • First Solar expects its S6 modules to offset S4 module discounts and generate a premium to c-Si panels. This could drive 2019 average selling prices above 2018 levels.
  • Shah anticipates capacity expansion in the U.S. considering the firm’s 9-gigawatt backlog and near-term potential to sell out through 2020. “This incremental capacity expansion would be net accretive to earnings in our view, since the company would likely receive additional tax incentives for domestic/U.S. manufacturing,” he said. 
  • First Solar is seen to have the greatest backlog in U.S. business, which generates higher price points and better margins than international bookings.

Price Action

At the time of publication, shares were trading up 4.22 percent at $64.40. 

Related Links:

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First Solar And Sunrun: A Renewable Energy Pair Trade From Credit Suisse

Latest Ratings for FSLR

Apr 2019ReiteratesBuy
Apr 2019ReiteratesBuy
Jan 2019Initiates Coverage OnOverweight

View More Analyst Ratings for FSLR
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Solar Stocks solars Vishal ShahAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


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