Deutsche Bank upgrades this solar stock poised to rally 30%

by | Sep 8, 2023 | Financial

Now is the time for investors to invest in First Solar , according to Deutsche Bank. Analyst Corinne Blanchard upgraded the solar panel maker to buy from hold. She also raised her price target to $235 from $220, implying shares stand to gain 30.2% in the next 12 months. “In the context of uncertainty and a cloudy background for the solar industry (soft Resi demand & stuffed channel, equipment pricing, high interest rate environment), we see First Solar as relatively protected from those concerns, as the company has established itself in the niche market of thin film modules, with strong demand on-going,” Blanchard wrote in a Thursday note. The upgrade comes after First Solar held an analyst day Thursday. During the event, the company announced that it expects gross margin to improve from about 35% this year to over 60% by the end of 2026. It also said further production capacity will come online in the U.S. by that year as the company’s production volumes grow in the coming years. Management had also mentioned long-term growth opportunities in its thin film CuRe models and tandem technology , which is geared towards residential customers, as well as the company’s potential to eventually penetrate the retail market. First Solar is the nation’s largest solar panel manufacturer. “We believe First S …

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