Monday, Citi raised its price target on First Solar (NASDAQ:FSLR) shares to $200 from $185, while keeping a Neutral rating on the stock. The adjustment follows discussions with the company's CFO and Investor Relations during the Citi Energy and Climate Technology conference.
The firm's analysts were encouraged by First Solar's strategy and future prospects. They noted the U.S. Department of Commerce's (DOC) decision to initiate an anti-dumping and countervailing duty (AD/CVD) investigation on solar module imports from Southeast Asia could lead to a protracted process.
Based on outcomes of similar historical cases, additional tariffs might be imposed, potentially enhancing the competitiveness of First Solar's modules.
First Solar has not experienced significant project delays at this time. However, the true challenge may emerge with the commencement of deliveries for projects slated for 2026, which may not have secured all the necessary equipment yet. The company is currently cautious about taking on additional bookings, with expectations of potentially better pricing following the U.S. elections.
Citi's revised price target reflects a more optimistic view of the company's stock, with the possibility of reaching up to $230 in a bull case scenario. The firm's valuation anticipates that First Solar's market position could strengthen if tariffs are applied to competing imports, making the company's products more appealing in the market.
InvestingPro Insights
Following Citi's updated price target on First Solar (NASDAQ:FSLR), it's notable that the company's financial health and market performance echo some of the optimism from analysts. InvestingPro data highlights a robust revenue growth of 27.28% over the last twelve months as of Q1 2024, with an even more impressive quarterly growth rate of 44.83%. This suggests that First Solar is not only growing but doing so at an accelerating pace.
The company's strategic financial position is reinforced by an InvestingPro Tip that First Solar holds more cash than debt on its balance sheet, indicating a solid liquidity position that could support its cautious approach to new bookings. Additionally, a P/E ratio of 19.98, adjusted for the last twelve months as of Q1 2024, aligns with the industry standards, offering potential investors a balanced view of the company's valuation relative to its earnings.
InvestingPro also points out that analysts expect First Solar to be profitable this year, a sentiment that aligns with Citi's positive outlook. To delve deeper into First Solar's prospects and gain access to further insights, including the 7 additional InvestingPro Tips available, readers can visit https://www.investing.com/pro/FSLR. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.