Roth Capital Maintains Buy on First Solar, Inc. (FSLR) as ITC Vote Backs Suniva Injury Claims

201 injury found - What does it mean for First Solar?

Roth Capital analyst Philip Shen is out with a research note on shares of First Solar, Inc. (NASDAQ:FSLR), following the news that the US International Trade Commission (ITC) has voted 4-0 in favor of SolarWorld and Suniva’s Section 201 petition, finding that imports of solar cells and solar panels have inflicted “serious injury” on the domestic solar market.

Shen commented, “After the initial upside move in FSLR post-vote results, we expect the stock to continue to trade sideways until we get color on what the remedy recommendation could be. We’ll start to get some details at the remedy hearing scheduled on 10/3, and the final recommendation is expected to be released on 11/13.”

“FSLR has the potential to produce 2GW of S4 modules compared with official plans of just 1GW in 2018 depending on the outcome of the section 201 trade case. The company continues to plan for 3.5GW of S6 production in 2019, exiting the year at a 4GW run-rate. Additionally, management continues to target 1GW of annual systems development globally. Longer-term, FSLR indicated that the company can reach 6-7GW of capacity on a brownfield basis before needing to do greenfield expansion. Notably, customers appear to have confidence in FSLR’s ability to deliver its S6 module as the company is in late stage discussions to finalize contracts to deliver S6 supply under traditional module contract terms & conditions,” the analyst added.

As such, Shen reiterates a Buy rating on shares of First Solar, with a price target of $60, which implies an upside of 28% from current levels. (To watch Shen’s track record, click here)

Out of the 11 analysts polled in the past 3 months, 6 rate First Solar stock a Buy, while 5 rate the stock a Buy. With a return potential of 15%, the stock’s consensus target price stands at $59.00.


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