On Wednesday, Oppenheimer maintained its Outperform rating on First Solar (NASDAQ:FSLR) while slightly raising the price target from $268.00 to $269.00. The firm recognized First Solar's strong execution across various performance metrics, highlighting that the robust pricing for new bookings was an unexpected positive.
First Solar's ability to navigate domestic content requirements from the Inflation Reduction Act, manage import and broader pricing risks, and maintain its reputation for timely delivery were cited as key factors bolstering sales.
The analyst noted the advantages First Solar offers to developers by reducing the complexity of project management, thus streamlining project timelines and cash flows. First Solar's ongoing capacity expansion and guidance indicating incremental operating leverage are seen as promising signs of the company's operational efficiency.
The upward adjustment in price target reflects the analyst's anticipation of gross margin (GM) expansion, driven by First Solar's increased purchasing scale and improved factory throughput and conversion efficiency gains. These factors are expected to contribute positively to the company's financial performance.
Oppenheimer's stance remains bullish on First Solar, as the firm adjusts its estimates to align with the company's guidance. The increased price target to $269.00 is based on the belief that First Solar will continue to execute its strategies effectively and capitalize on the opportunities presented by the current market environment.
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