Opinions
The Panic-Proof Portfolio (Stockchase Research)
First Solar Inc.
FSLR-Q
TOP PICK
Jul 11, 2024
Stock price when the opinion was issued
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Up 54% in May, the S&P's top performer. His favourite solar play because it's profitable and the largest US manufacturer with lots of exposure in industrial-scale projects. They reported a monster earnings beat, but were greatly help by Biden announcing tariffs of China's solar cells. This stock has more room to run.
EPS of $3.25 beat estimates of $2.66; revenue of $1.01B beat estimates of $940M. Guidance was for EPS $13.00 to $14.00 (unchanged), vs estimates $13.60. It was a good quarter, and the company remains debt-free with $1.2B cash and strong EPS growth prospects over the next two years. However, election uncertainty does seem to be impacting customer bookings, and this may hurt the next two quarters until solar policies are clarified. But fundamentals ex-this factor are quite good, and it remains the leader in the sector, for sure.
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Our PAST TOP PICK with FSLR has triggered its stop at $2100. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 15%, when combined with our previous recommendations.
First solar (nasdaq: fslr) is a leading global provider of comprehensive photovoltaic (pv) solar systems which use its advanced thin-film modules. the company’s integrated power plant solutions deliver an economically attractive alternative to fossil-fuel electricity generation today. from raw material sourcing through end-of-life module collection and recycling, first solar’s renewable energy systems protect and enhance the environment. Social media mentions are up 300% in the past 24h.
Was a past pick of his. Shares have been bumpy for fears that Trump will impose tariffs on solar panels and he doesn't like green energy, though there's bi-partisan support for solar energy. FSLR is the only real option for the US, so FSLR is a fine position. Shares will be bumpy thought. Buy for the long term.
With demand for solar generation continuing to grow we reiterate FLSR as a TOP PICK. It is uniquely aided by US government protectionist policies against competition from China. It trades at 24x earnings and 3.5x book while supporting a 16% ROE. We also like that cash reserves are growing well and that analysts project a growth in EPS over 50% for the year. We continue to recommend a stop at $210, looking to achieve $290 -- upside potential of 24%. Yield 0%
(Analysts’ price target is $290.16)