Market Overview

First Solar's Valuation Exceeds Its Fundamentals, Morgan Stanley Says In Downgrade

First Solar's Valuation Exceeds Its Fundamentals, Morgan Stanley Says In Downgrade

Shares of First Solar, Inc. (NASDAQ: FSLR) have risen by 56% year-to-date versus a gain of around 2% for the S&P 500, according to Morgan Stanley.

The First Solar Analyst: Stephen Byrd downgraded First Solar from Equal-Weight to Underweight and raised the price target from $40 to $59.

The First Solar Thesis: The stock has been on an upturn, driven by a pickup in ESG investing, the potential of a Democratic sweep in the election and healthy third-quarter results, Byrd said in a Wednesday downgrade note.

While the global prospects for solar growth are bright, the valuation of First Solar’s stock does not reflect the “longer-term risk of margin erosion,” the analyst said. 

The company’s “primary competitors, large module manufacturers based in China, will continue to aggressively cut manufacturing costs, and offer lower prices for its modules, such that First Solar’s module margins will come under pressure,” he said. 

“We expect to see indications of this in the next few quarters, which will catalyze the stock to re-rate.”  

FSLR Price Action: Shares of First Solar were up 9.04% at $86.99 at last check Thursday.

Latest Ratings for FSLR

Nov 2020Morgan StanleyDowngradesEqual-WeightUnderweight
Oct 2020JP MorganDowngradesOverweightNeutral
Oct 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for FSLR
View the Latest Analyst Ratings


Related Articles (FSLR)

View Comments and Join the Discussion!

Posted-In: Morgan Stanley Stephen ByrdAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
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.
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