Analyst Dimple Gosai of Bank of America Securities reiterated a Buy rating on First Solar (FSLR – Research Report), reducing the price target to $215.00.
Dimple Gosai has given his Buy rating due to a combination of factors that highlight First Solar’s strong position in the U.S. market. The company’s domestic manufacturing capabilities provide a competitive edge as trade barriers increase, allowing it to benefit from higher pricing and domestic content premiums. This advantage is further amplified by the limited offshore capacity and the impact of tariffs, which tighten the competitive landscape for peers.
Additionally, while potential tariffs on imports from countries like Vietnam, Malaysia, and India could impact First Solar’s gross margins, the overall effect is expected to be manageable. The company is also poised to benefit from a ramp-up in production in the latter half of the year, with new plants in Alabama and Louisiana coming online. Despite some near-term challenges, the valuation suggests significant upside potential, even under conservative scenarios, supporting the Buy rating.
Gosai covers the Technology sector, focusing on stocks such as First Solar, Enphase Energy, and SolarEdge Technologies. According to TipRanks, Gosai has an average return of -18.5% and a 32.76% success rate on recommended stocks.
In another report released yesterday, Guggenheim also maintained a Buy rating on the stock with a $253.00 price target.