First Solar Upgraded at Truist on Pricing and Trade Policy
Truist upgraded First Solar to Buy, raising its target to $270. The firm sees pricing gains and a trade policy boost from the Section 232 decision on Dec. 4.
Truist Securities upgraded First Solar to Buy from Hold, raising the price target to $270 from $229. Shares of the solar module maker rose 1.5% on the call.
The upgrade reflects the analyst's view that pricing and demand will improve through the 2030s, driven by the Section 232 trade decision effective Dec. 4. That rule could limit imports, benefiting domestic manufacturers. Truist also forecasts First Solar will generate positive free cash flow by 2025, reaching $2.5 billion by 2027.
First Solar manufactures thin-film cadmium-telluride modules for utility-scale projects. Its market cap is about $19.4 billion.
By GuruFocus's GF Value metric, the stock is modestly undervalued. The GF Value stands at $250.57 against the current price of $180.54, a 28% gap. The trailing P/E of 11.13x is well below the five-year median of 19.78x.
First Solar holds an Alpha Score of 55, labeled Mixed. No insider purchases were recorded in the past year, while insiders sold about $41.6 million in shares. Of nine tracked gurus, three added to positions and eight trimmed.
The Section 232 decision is scheduled for Dec. 4.
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