Ticker (Exchange) – FSLR (NASDAQ)
ISIN - US3364331070
Current price – $240.7
Target price – $294.5
Growth potential – 22.4%🔥
Investment horizon – 1 year
First Solar is an American company engaged in the production of solar panels, as well as their maintenance and recycling. It is one of the largest players in this market. The company demonstrates strong financial performance and is relatively undervalued by the market, creating an attractive opportunity for purchase. The fair value of First Solar's shares is $294.5, suggesting a potential upside of 22.4%.
Investment thesis
🔼 Strong Financial Performance. First Solar reported strong results for Q2 2024. The company’s revenue increased by 24.6% YoY to $1 bln, driven by both higher solar panel sales and an increase in the average selling price. Earnings per share (EPS) surged by 104.4% YoY to $3.25, supported by lower operating expenses. These results exceeded market expectations. Additionally, First Solar reaffirmed its 2024 guidance, expecting EPS in the range of $13-$14 and revenue between $4.4-$4.6 billion.
🔼 Market Undervaluation. Despite strong financial performance, First Solar is attractive in terms of market valuation. The company is priced at just 17.8 times expected annual earnings, which is 25% below the sector median and 16% below its own 5-year average.
🔽 Risks. A significant risk for First Solar's stock is the upcoming U.S. presidential election. Republican candidate Donald Trump intends to jeopardize a $1 trillion spending plan for renewable energy, which could negatively impact the company’s business.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US3364331070
Current price – $240.7
Target price – $294.5
Growth potential – 22.4%🔥
Investment horizon – 1 year
First Solar is an American company engaged in the production of solar panels, as well as their maintenance and recycling. It is one of the largest players in this market. The company demonstrates strong financial performance and is relatively undervalued by the market, creating an attractive opportunity for purchase. The fair value of First Solar's shares is $294.5, suggesting a potential upside of 22.4%.
Investment thesis
🔼 Strong Financial Performance. First Solar reported strong results for Q2 2024. The company’s revenue increased by 24.6% YoY to $1 bln, driven by both higher solar panel sales and an increase in the average selling price. Earnings per share (EPS) surged by 104.4% YoY to $3.25, supported by lower operating expenses. These results exceeded market expectations. Additionally, First Solar reaffirmed its 2024 guidance, expecting EPS in the range of $13-$14 and revenue between $4.4-$4.6 billion.
🔼 Market Undervaluation. Despite strong financial performance, First Solar is attractive in terms of market valuation. The company is priced at just 17.8 times expected annual earnings, which is 25% below the sector median and 16% below its own 5-year average.
🔽 Risks. A significant risk for First Solar's stock is the upcoming U.S. presidential election. Republican candidate Donald Trump intends to jeopardize a $1 trillion spending plan for renewable energy, which could negatively impact the company’s business.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
