Goldman Sachs analysts reiterated a Buy rating and $272 price target on First Solar (NASDAQ:FSLR), stating the firm remains bullish on the stock.
The analysts said in a note to clients that catalysts brewing into the second half of 2023 set up well for more positive estimate revisions.
"We remain bullish on FSLR ahead of multiple catalysts brewing in 2H23 that we see having the potential to drive consensus estimates - and thus the stock - higher," they wrote.
"In particular, our field work suggests more active discussions around the manufacturing capacity expansion (likely in Southeast US) could make for the next headline catalyst on the docket heading into 2Q earnings, while our discussions with the supply chain suggest bookings activity in the US utility-scale sector has also seen some improvement following Treasury's updated guidance around domestic content rules in the Inflation Reduction Act."
The analysts explained that based on investor feedback, the sharp decline in solar polysilicon prices over the past couple of months appears to be contributing significantly to the recent weakness in FSLR shares, alongside profit-taking.
However, Goldman Sachs believes "the correlation of weaker poly pricing to a weaker fundamental backdrop for FSLR is less relevant than it has been in some time."