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First Solar Inc (FSLR) has been in a downtrend over the past seven months but a Morgan Stanley analyst is convinced that the worst is now in the rearview mirror.
First Solar stock could climb to $237On Friday, Andrew Percoco upgraded the solar stock to “overweight” and raised his price target to $237 which represents about a 65% upside from here.The analyst is super bullish on First Solar stock because he’s confident that the Tempe-headquartered firm will command solid pricing in the near to medium term. His research note reads:
We believe First Solar offers one of the strongest risk-adjusted earnings profiles within our U.S. Clean Tech coverage with its sold-out position through 2026.
Note that $FSLR did trade at a high of $232 in May of 2023.
First solar stock is trading at a deep discountThe Morgan Stanley analyst is constructive on First Solar stock as its risk-reward profile is fairly “attractive” following a steep decline in the back half of this year.He expects “cost hedging” to help the Nasdaq-listed firm in expanding its margin by up to 1,020 basis points through 2026. At 7.2 times, $FSLR is trading well below its typical pre-IRA price-to-earnings ratio of 21.6 times, as per Andrew Percoco.
As domestic #solar manufacturing expands, it strengthens U.S. supply chains and boosts local economies.
Another new investment in MN is doubling production and creating over 130 jobs in the state ⤵️https://t.co/XvoXiWQiCX
— Solar and Storage Industry (@SEIA) December 8, 2023
Last month, First Solar Inc reported revenue for its third financial quarter that came in shy of Street estimates. The manufacturer of solar panels, nonetheless, lifted the lower end of its guidance for the full year.More By This Author:Paramount Stock Popped 15% On Friday: Find Out Why
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