FSLR - First Solar: Strong Future Ahead For US Based Solar Manufacturing

2024-05-20 11:09:08 ET

Summary

• First Solar is a high growth company without a premium valuation. Demand for their panels is rising, they are opening new factories, and government incentives are boosting margins.
• First Solar continues to execute their expansion plans in the US and abroad while demand remains robust.
• IRA tax benefits will result in roughly a 30% improvement in margins.
• China has substantial oversupply of solar panel manufacturing capacity, but governments are looking to constrain dumping by increasing tariffs and adding other restrictions to bolster domestic production.

Investment Thesis

The solar industry has been in contraction for over a year now. However, First Solar ( FSLR ) has not only beat the industry, they have also continued to grow at a breakneck pace. As the largest domestic solar manufacturer and most valuable solar company globally, First Solar is well positioned to take advantage of increasing demand for solar panels and government incentives designed to boost domestic production....

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