Normally, a stock getting an upgrade means a little extra boost from the investors, who reward that achievement with a little extra show of faith and a little more cash in the investment coffers. That didn’t quite prove so today for solar stock First Solar (NASDAQ:FSLR), however, as it slipped fractionally in Thursday afternoon’s trading.
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The word came from JPMorgan via analyst Mark Strouse, who noted that the recent decline seen in share prices serves to improve the “risk-reward” proposition. That’s good news for First Solar, which also has the distinction of offering “…the best visibility into medium-term growth prospects owing to a backlog that stretches into later this decade.” This is true enough; when you can measure your backlog of orders in fractions of a decade, you’re doing quite well by almost any standard.
Granted, Strouse noted, there are some risks ahead, especially since First Solar gained quite a bit from the Inflation Reduction Act. However, Strouse also points out the macro issues involved; the entire solar stock field has had trouble with rising interest rates and access to capital, so First Solar really hasn’t been hurt much more or less by macro conditions than any other firm in the sector. Indeed, not only has First Solar benefited from the Inflation Reduction Act, but its work to make solar panels domestically in Perrysburg, Ohio, has given it access to some other benefits as well, like rapid shipping.
Is First Solar a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FSLR stock based on 17 Buys and six Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average FSLR price target of $247.32 per share implies 62.23% upside potential.
