First Solar Gains Steam As Raymond James Upgrades To Market Perform

First Solar Gains Steam As Raymond James Upgrades To Market Perform

Raymond James analyst Pavel Molchanov upgraded First Solar Inc FSLR from Underperform to Market Perform without a price target.

  • Following a rash of negative headlines and the resulting pressure on the stock, the risk/reward has become more balanced.
  • Amid many tariff barriers in place, any steps in the opposite direction have the effect of intensifying competition, leading to margin erosion for First Solar.
  • Including its 4Q drop of 8%, the WilderHill Clean Energy Index (ECO) posted a 2021 decline of 30%, but that statistic, in isolation, is meaningless. 
  • Molchanov looks at the profit-taking of 2021 as entirely reasonable and indeed healthy as it came after outsized gains for two straight years: 58% in 2019 and a stunning, record-setting 203% in 2020. 
  • Aggregating the past three years, the ECO gained 232%, more than double the S&P 500's 92%. 
  • First Solar designs and manufactures solar photovoltaic panels, modules, and systems in utility-scale development projects. The company's solar modules use cadmium telluride to convert sunlight into electricity.
  • Price Action: FSLR shares traded higher by 2.94% at $91.18 in the premarket session on the last check Tuesday.

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