Morgan Stanley raises First Solar stock target to $245 from $237

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Morgan Stanley raises First Solar stock target to $245 from $237
Credit: © Reuters.

On Wednesday, Morgan Stanley (NYSE: MS ) maintained an Overweight rating on First Solar (NASDAQ: FSLR ) and increased the price target to $245.00, up from the previous $237.00. The firm's analysis followed the in-line financial results for the fourth quarter of 2023 and the guidance provided for 2024.

The report noted improved pricing on incremental bookings, which is expected to address concerns regarding potential average selling price (ASP) compression. The analyst highlighted that the current valuation of First Solar's stock appears to significantly undervalue the company's earnings quality and growth potential.

According to the analysis, there is a stark contrast between the performance of the company and its market valuation. First Solar's stock is trading approximately 70% below its historical multiple and 50% below that of its industry peers.

The assessment indicates that the market may not be fully recognizing the strength of First Solar's earnings and its position in the market. The revised price target suggests that Morgan Stanley sees potential for the stock's value to adjust upwards to more accurately reflect its financial health and future prospects.

Investors and market watchers will likely monitor First Solar's stock performance closely in the wake of this updated financial guidance and the optimistic outlook provided by Morgan Stanley.

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