FSLR - First Solar Remains A Viable Solar Investment Despite The Silicon Headwinds
2024-04-03 14:26:17 ET
Summary
- FSLR's cadmium telluride investment thesis remains robust, despite the intensified pricing competition from Chinese-produced silicon-based solar panels and the former's decelerating backlog growth.
- Thanks to the backlog through 2030 and the expanding nameplate capacity through 2026, its top/ bottom line performance is secured in the intermediate term.
- FSLR has achieved a world record in-lab conversion efficiency of 22.6%, with the management targeting a module efficiency of 28% by 2030 compared to the theoretical limit of 35.79%.
- Cadmium Telluride-based solar panels may also gain in adoption, with it typically being able to withstand hailstorms, which has recently damaged thousands of silicon-based solar panels in Texas.
- Combined with the geopolitically secure supply chain and long-term electrification trend, we believe that FSLR may more than double moving forward.
We previously covered First Solar, Inc. ( FSLR ) in January 2024, discussing how its utility-scale solar panels remained in hot demand, with its growing backlog extended through 2030 at favorable ASPs.
Combined with the bottomed solar investment thesis and the normalizing macroeconomic outlook, we maintained our Buy rating for the stock then....
First Solar Remains A Viable Solar Investment, Despite The Silicon Headwinds