Market Overview

Barclays Flicks The Switch, Downgrades First Solar

Share:
Barclays Flicks The Switch, Downgrades First Solar

Industry data cross 5,000 projects that are ongoing or in the pipeline suggests First Solar, Inc. (NASDAQ: FSLR) is "in trouble," according to Barclays.

The Analyst

Moses Sutton downgraded First Solar from Overweight to Underweight with a price target lowered from $66 to $49.

The Thesis

First Solar held a 20% market share in past solar projects, but its share of projects that are currently in development stands at just 4%, Sutton wrote in a note. The data was compiled by Bloomberg New Energy Finance (BNEF) database and accounts for acquisitions, multiple company names, and excluded projects above 10 MW.

The research firm's deep dive into thousands of projects and taking into account the age of the pipeline (when new developments were announced) and the stage of development, makes it "unlikely" First Solar will "maintain a position" among top downstream players.

First Solar's closure of its EPC business "hinted" it's struggling to win new projects, according to the analyst. However, there's still reason to believe First Solar will capture a total market share of at least 10% moving forward.

Despite a shift from bull to bear, the firm emphasizes it's not a bearish call on the overall U.S. solar industry. Also, First Solar deserves some credit for its resiliency in a challenging module pricing, bookings coming in ahead of expectations, and improving unit costs.

Price Action

First Solar's stock traded lower by 6.5% to $54.97 per share at time of publication.

Related Links:

Benzinga's Top Upgrades, Downgrades For January 15, 2020

Analyst: Dim Outlook For Solar Sector In 2020

Latest Ratings for FSLR

DateFirmActionFromTo
Jan 2020MaintainsEqual-Weight
Jan 2020DowngradesOverweightUnderweight
Oct 2019UpgradesMarket PerformMarket Outperform

View More Analyst Ratings for FSLR
View the Latest Analyst Ratings

Posted-In: Barclays Moses Sutton SolarAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (FSLR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
YMABH.C. WainwrightReiterates41.0
UBERUBSInitiates Coverage On56.0
PACDFearnleysDowngrades
AIVBMO CapitalDowngrades
RNGWells FargoInitiates Coverage On240.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com