BMO cuts First Solar stock price target, maintains outperform

Published 31/07/2024, 14:18
BMO cuts First Solar stock price target, maintains outperform

On Wednesday, BMO Capital Markets adjusted its financial outlook for First Solar (NASDAQ:FSLR), a leading solar technology company while lowering its price target on First Solar shares to $286 from the previous $311 while retaining an Outperform rating on the stock.

The adjustment follows First Solar's recent earnings call, which was described as uneventful. This neutrality is expected to have a varied impact on the near-term performance of the company's stock.

First Solar disclosed an update to its year-to-date bookings, which included an additional 0.9 gigawatts since the first-quarter earnings call, at an average selling price (ASP) of $0.316 per watt, a slight increase from $0.313 per watt last quarter.

BMO had anticipated a modest quarter in terms of booking volume, attributing this expectation to the uncertainty surrounding the elections.

The bookings indeed met these conservative expectations, but the firm had hoped for a higher ASP in the range of $0.32 to $0.33 per watt, considering the ongoing anti-dumping/countervailing duty (AD/CVD) complaint.

Despite these developments, First Solar has affirmed its financial guidance for the fiscal year 2024. BMO suggests that the election may continue to influence the company's narrative through the third-quarter earnings season.

Nonetheless, BMO maintains its positive Outperform rating on First Solar's shares, indicating continued confidence in the company's performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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