First Solar stock outlook: Deutsche Bank sees upside to $280

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on Jun 28, 2024
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  • Deutsche Bank reiterated its buy rating on First Solar stock today.
  • Analyst Corinne Blanchard explained why in a research note on Friday.
  • First Solar stock does not currently pay a dividend.

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First Solar Inc (NASDAQ: FSLR) has lost about 25% over the past few weeks but a Deutsche Bank analyst is convinced that the story moving forward will be a different one. 

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Shares of the solar panels manufacturer do not currently pay a dividend either. 

First Solar stock could gain another 20%

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Corinne Blanchard reiterated her “buy” rating on First Solar stock this morning and raised her price target to $280 that translates to about a 20% upside from here. 

The analyst’s new price target on FSLR assumes a multiple of 15 times on its estimated EPS for 2025. She recommends owning shares of the solar panels company because she has confidence in its growth prospects moving forward. 

Note that First Solar shares have rallied some 700% since its pandemic low. 

FSLR to report Q2 earnings in July

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Corinne Blanchard expects First Solar to earn $2.87 per share in its second financial quarter. The Nasdaq-listed firm earned $1.85 a share in the same quarter last year. 

In May, analysts at Oppenheimer also reiterated their bullish view on FSLR shares. Their research note read last month:

We are raising our PT to $219.00/sh from $195.00/sh (methodology unchanged) as we raised our terminal ASP by 1c/W given recent policy actions (section-201, AD/CVD investigation) and guidance (domestic content).

Many believe that First Solar stock will materially benefit now that the U.S. government has scrapped tariff exemptions to boost the domestic solar solar sector. 

First Solar doubled profit in Q1

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In late April, First Solar reported its financial results for the first quarter that handily topped Street estimates. The solar panel maker more than doubled its net income to $210 million in Q1. 

FSLR generated most of its sales from the United States in the first quarter. Mark Widmar – chief executive of the Nasdaq-listed firm said at the time:

We are pleased with our start to 2024, with good operating performance, selective bookings with a year to date ASP over 31 cents per watt excluding adjusters, and solid financial results. Our differentiated technology and balanced business model are enabling us to drive growth, navigate industry volatility and deliver enduring shareholder value.

Widmar also reiterated the guidance for up to $4.6 billion for the full year as well. FSLR expects its per-share earnings to fall between $13 to $14 in 2024. Last month, First Solar Inc teamed up with ZSW on thin-film PV tech.

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