On Thursday, Evercore ISI adjusted its price target for First Solar (NASDAQ:FSLR) shares to $232 from $227, while reaffirming an Outperform rating. The firm highlighted First Solar's effective execution in scaling up manufacturing capacity and achieving a record production of 3.6GW of modules in the quarter, including 2.4GW of Series 6 and 1.2GW of Series 7.
First Solar's revenue has been bolstered by robust pricing momentum, with the company reporting approximately 2.7GW of net bookings year-to-date at $0.313/watt, not counting adjusters. A significant part of First Solar's backlog may see an increase in base average selling prices (ASPs) if the company accomplishes certain technological milestones.
The company has successfully completed the UL and IEC certification process and anticipates launching its CuRe technology at its lead line factory in Ohio in the fourth quarter. This program aims to enhance module performance by improving bifaciality characteristics through advancements in semiconductor structure.
Evercore ISI noted that First Solar is focusing on long-term contract customers and is experiencing increased demand, particularly from datacenter load growth. The analyst firm also expects First Solar to benefit from new and higher tariffs as well as the reversal of the bifacial exemption.
However, First Solar has disclosed some adjustments to its expectations. Due to client requests for delayed delivery volumes and one customer's intention to sell its U.S. solar development portfolio, First Solar has revised its forecast for the net cash balance for fiscal year 2024.
The company now projects a greater concentration of shipments and sold volume in the fourth quarter compared to the third, with some cash collections initially expected in the fourth quarter now anticipated in the first quarter of 2025. Consequently, Evercore ISI has raised its price target to reflect these developments.
InvestingPro Insights
As First Solar (NASDAQ:FSLR) continues to expand its manufacturing capacity and achieve new production milestones, it's important to consider the company's financial health and market performance to understand the broader investment picture. The company's strategic positioning is underscored by a robust balance sheet, with InvestingPro Tips indicating that First Solar holds more cash than debt, suggesting financial stability. This is complemented by the company's ability to meet short-term obligations, as its liquid assets exceed short-term liabilities.
Looking at real-time data from InvestingPro, First Solar boasts a market capitalization of 19.01 billion USD, reflecting its significant presence in the industry. The company's P/E ratio stands at a healthy 23.33, with an adjusted figure of 18.11 for the last twelve months as of Q1 2024, indicating a potentially more attractive valuation for investors. Additionally, revenue growth has been impressive, with a 27.28% increase over the last twelve months as of Q1 2024, and an even more remarkable quarterly revenue growth of 44.83% for Q1 2024.
Investors looking to delve deeper into First Solar's prospects can find a wealth of additional InvestingPro Tips by visiting https://www.investing.com/pro/FSLR. With analysts anticipating sales growth in the current year and predicting profitability, these insights could prove invaluable. For those considering a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Moreover, there are 6 more tips available on InvestingPro that could further inform investment decisions.
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