SolarCity Corp, First Solar, Inc.: Buy Into Solar Growth At Attractive Multiples

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SolarCity Corp, First Solar, Inc.: Buy Into Solar Growth At Attractive Multiples
By BrokenSphere (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

All major solar companies, including SolarCity Corp (NASDAQ:SCTY) and First Solar, Inc. (NASDAQ:FSLR), have announced their Q1 results. So, JPMorgan analyst Paul Coster takes a look at solar companies’ growth potential. Coster says that solar firms continue to post solid revenue and earnings growth amid rising demand for solar power. However, investor sentiment deteriorated during the quarter, mainly due to lower cell and panel pricing. Solar index is down 13% since its March 6 peak. The research firm says that the sell-off offers an opportunity to buy into solar growth at attractive multiples.

First Solar sees growth in utility-scale projects

JPMorgan has an Overweight rating on both SolarCity Corp (NASDAQ:SCTY) and First Solar, Inc. (NASDAQ:FSLR). The Tempe, Arizona-based company reported better than expected first quarter results on May 6. The company earned $1.10 on revenues of $950 million. Wall Street had called for $0.52 in EPS on revenues of $837 million. First Solar exceeded expectations mainly due to the earlier than anticipated revenue recognition for the Campo Verde project.

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