First Solar, Inc. (NASDAQ:FSLR), a leading manufacturer of solar panels, will report Q1 results today, but analysts are already recommending BUY or HOLD, even before the results are revealed.
First Solar in the News
Consensus estimates are expecting a revenue of $837 million, non-GAAP net income of $53.2 million and earnings per share of 52 cents. Right now First Solar has guided first quarter sales between $800 million and $900 million and an EPS between 50 cents and 60 cents. While some analysts are concerned about fewer amounts of bookings this quarter, other analysts are focusing on the fact that First Solar, Inc. (NASDAQ:FSLR) has “one of the most stable balance sheets in the solar industry”.
GrizzlyRock Value Partners was up 16.6% for the first quarter, compared to the S&P 500's 5.77% gain and the Russell 2000's 12.44% return. GrizzlyRock's long return was 22.3% gross, while its short return was -2.9% gross. Compared to the Russell 2000, the fund's long portfolio delivered alpha of 10.8%, while its short portfolio delivered alpha Read More
Why Analysts Want To HOLD or BUY First Solar
Deutsche Bank analyst Vishal Shah maintained his HOLD First Solar rating and a price target of $70. First Solar has been one of the top gainers in solar stocks over the last quarter, but they have also underperformed relative to their competitors. In advance of the quarterly results, Vishal is acting cautiously while wanting to hang on to the stock. Vishal is ranked 2719 out of 3051 analysts, with a -3.1% average return over S&P-500 and a 49% success rate of recommendations.
However, analysts Tyler Frank and Ben Kallo from Robert W. Baird, are recommending BUY First Solar, viewing the stock as a dominating force in the solar market. The analysts remark that, “First Solar, Inc. will be able to impress with the help of its strong balance sheet compared to its competitors, which would help the company get new business.” Tyler and Ben also believe that “First Solar is well positioned to launch a yieldco given its strong balance sheet, which will help it to acquire projects under development, expand its pipeline and hold projects before dropping them into a yieldco.” These analysts foresee long-term growth and are ready to BUY First Solar now. Tyler Frank is ranked 401 out of 3051 analysts, with a +6.3% average return over S&P-500 and a 63% success rate of recommended stocks. Ben Kallo is ranked number 14 out of 3051 analysts, with a +13.7% average return over S&P-500 and a 66% success rate of recommended stocks.
First Solar, Inc. (NASDAQ:FSLR)’s results may impact how other analysts recommend the stock, but these analysts are confident in their financial advice before the quarterly numbers. Will you act cautiously and HOLD First Solar, or are you confident and ready to BUY First Solar now?
Jordan Faigen covers financial markets and the latest stock market news. She can be reached at [email protected]