BofA Upgrades First Solar On Outlook, Emerging New Tech

First Solar, Inc. (NASDAQ: FSLR) management maintained a surprisingly bullish tone for 2022 and beyond, expressing confidence in sustaining average selling prices in the high 20 cents range per watt on bookings beyond 2022, according to BofA Securities.

The First Solar Analyst: Julien Dumoulin-Smith upgraded First Solar from Neutral to Buy, while raising the price target from $62 to $73.

The First Solar Thesis: Being one of the few large-scale manufacturers of solar panels, First Solar is poised to benefit from accelerating solar sales in the U.S., particularly to large Commercial and Industrial customers, Dumoulin-Smith said in the note.

With the shift to CuRe technology for S6 panels expected to drive wattage and energy density, management provided greater clarity on improvements for 460 watts in 2022, 480 watts in 2023, and 500 watts beyond that without “an increase in larger module form factor as with competitor announcements of late,” the analyst noted. He further wrote, “Cost reductions with CuRe and incremental capacity through site optimization continue to trend well.”

Management’s comments on next-gen technology beyond S6 and capacity expansion beyond 8 gigawatts bone well for First Solar maintaining a competitive advantage, Dumoulin-Smith added.

He raised the earnings estimates for 2022 from $2.61 to $4.04 per share.

FSLR Price Action: Shares of First Solar traded higher by 11.5% at $71.87 at the time of publication.

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