FSLR - First Solar eases off Friday's big gain as Wolfe downgrades

2023-05-15 12:56:11 ET

First Solar ( NASDAQ: FSLR ) -1.8% in Monday's trading as Wolfe Research downgraded to Peer Perform from Outperform after the stock skyrocketed 26.5% Friday as a result of constructive guidance from the Biden administration on domestic content and likely some short covering, as the stock's valuation is becoming full.

Wolfe said it continues to find First Solar's ( FSLR ) story attractive on earnings growth, positioning into a recession given significant contracting, and as an anti-China play, but it has become more challenging to argue for material upside based on fundamental valuation.

The firm sees increased odds of First Solar ( FSLR ) pursuing an incremental U.S. factory given the guidance, which it said would add ~$20/share to its distributable cash flow valuation. and continued bookings in the latter half of the decade at strong ASPs could provide continued momentum for the stock.

More on First Solar:

• Financial and valuation comparisons to sector peers
• Analysis: First Solar: 180% Rally In Nine Months Has Price In Anticipated Growth Tailwinds
• Stock price return: Up 56% YTD, up 236% in the past 12 months

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