Deutsche Bank upgrades solar stock expected to rise 30%
According to Deutsche Bank, now is the time for investors to invest in First Solar. Analyst Corinne Blanchard upgraded the solar module manufacturer to “buy from the waiting list”. She also increased her price target to $235 from $220, meaning the stock is expected to gain 30.2% over the next 12 months. “Given the uncertainty and dire situation in the solar industry (muted Resi demand and crowded channel, equipment prices, high interest rate environment), we view First Solar as relatively protected from these concerns as the company has established itself in the industry’s niche thin-film module market with a sustained growth rate strong demand,” Blanchard wrote in a note Thursday. The upgrade comes after First Solar held an analyst day on Thursday. During the event, the company said it expected gross margin improvement of about 35% this year to over 60% by the end of 2026. It also said that additional production capacity in the USA will be commissioned by this year to secure the company’s production volumes will grow in the coming years. Management also had long-term growth opportunities in its Thin-film CuRe models and Tandem technology aimed at residential customers, as well as the company’s potential to eventually penetrate the retail market. First Solar is the nation’s largest manufacturer of solar panels. “We believe First Solar has delivered what investors have been looking for – a strong three-year roadmap with improving numbers and core margins,” Blanchard said. First Solar is also at an “attractive entry point” compared to the company’s price target, the analyst said. Shares are up 20.5% this year, with the stock up 2.6% in premarket trading on Friday on positive reaction from Thursday’s analyst day. — Michael Bloom contributed to this report.
https://www.cnbc.com/2023/09/08/deutsche-bank-upgrades-this-solar-stock-poised-to-rally-30percent.html Deutsche Bank upgrades solar stock expected to rise 30%
