First Solar: Ready for Takeoff

BATS:FSLR   First Solar, Inc.
First Solar Inc. has an upside of 57 to 135 percent, depending on what multiple analysts decide to assign to it. Despite returns being relatively flat year to date (-.17) percent, the company and analysts who cover the stock seem to be bullish on the future prospects. The forecasted 2024 earnings per share is 13.50 compared to 7.65 in 2023, representing a 76 percent increase year over year. To be fair, a 30 multiple is relatively conservative for a company expected to grow at 70 percent for the next two years.

Taking a one-year view, you can see that FSLR is following its slow-rising uptrend line (aqua line). You can also see that it is now above all three of its significant moving averages. Blue (50 Day Moving Average), Yellow (150 Day Moving Average), Orange (200 Day Moving Average). Now, let’s take a five-year view of the second chart below.

First Solar (FSLR) 1 Yr Chart

Taking a step back from 1 year to 5 years, we can now see that this trend line extends back to around July 2022, making it a strong line of support. Additionally, depending on how you draw the lines, we could have a potential break out to $200 on the horizon.

First Solar (FSLR) 5 Yr Chart

Share Math + Summary:
With EPS expected to grow 76 percent in 2024 and gross margins expected to grow 58 percent, we think the math we will provide below could be relatively conservative. Here are our thoughts regarding price targets for First Solar quarter end.
13.50 EPS * 20 = $270
13.5 EPS * 30 = $405

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