On Tuesday, December 20th, Goldman Sachs analyst Brian Lee, released a research report maintaining the Buy rating on First Solar, and raised the 12 month target forecast to $231 from $179.
Brian Lee  favours utility-scale solar companies over residential solar firms.  First Solar has “outsized exposure to U.S. utility-scale solar.” Compared to Chinese silicon-based modules, the thin-film technology produced by First Solar has a significantly smaller negative environmental impact.
First Solar Inc Stock Forecast
The average analyst target price for First Solar Inc over the next 12 months is USD 146.14, according to 22 analysts’ predictions for the stock. The consensus analyst rating for First Solar Inc. is Buy. First Solar Inc.’s stock analysis by Stock Target Advisor is Slightly Bullish and is based on 8 positive and 5 negative signals. The stock price of First Solar Inc. was USD 156.77 at the most recent closing. The share price of First Solar Inc. changed by +4.32% over the previous week, -5.90% over the previous month, and +68.28% over the previous year.
Fundamental Analysis
Positive Fundamentals
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Low volatility
The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good,
also keep in mind it can limit returns.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Low debt
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low
because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Negative Fundamentals
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector.
Conclusion:
First Solar’s stock analysis scores a 6.2 out of 10, where 0 is very bearish and 10 very optimistic, which suggests the stock is Bullish.
About First Solar:
Photovoltaic (PV) solar energy solutions are offered by First Solar, Inc. in the United States, Japan, France, Canada, India, Australia, and other countries. The business creates, produces, and markets solar modules made of cadmium telluride that turn sunlight into electricity. It benefits system creators and operators as well as other system owners, utilities, independent power producers, business and industrial organisations, and utilities. First Solar Holdings, Inc. was the company’s previous name before it changed to First Solar, Inc. in 2006. The headquarters of First Solar, Inc. are in Tempe, Arizona, where it was established in 1999.
