First Solar (NASDAQ:FSLR) was lifted to Overweight from Equal Weight at Barclays on Thursday, with analysts lowering the firm's price target on the stock to $224 from $230 per share.
In an environment where there is uncertainty around the trajectory of utility-scale growth, Barclays believes FSLR's contracted backlog, domestic content advantages, and current valuation offer an attractive entry point.
"Post the NEP update, investors are increasingly concerned about the implications for utility-scale growth in the 2024+ timeframe. In this sort of backdrop, we think FSLR's domestic content advantages and contracted backlog that extends out through the end of the decade provides it with better visibility than peers," the analysts explained.
However, they note that the valuation gap between FSLR and its peers has widened and FSLR has "the best visibility of utility-scale names."
With the firm also believing the stock is being overly penalized for several risks, they believe the gap between FSLR's valuation compared to its peers is "too large."