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Goldman Sachs Remains Bullish on First Solar Following Strong Q2 Earnings and Revenue
Investment Bank Sticks to Buy Rating
Goldman Sachs expresses optimism for First Solar, as the company reports better-than-expected second-quarter earnings and revenue. First Solar posted $1.59 earnings per share on $811 million in revenue, surpassing Refinitiv's estimates of 96 cents per share on revenue of $721 million. This positive performance, coupled with First Solar's plans to invest $1.1 billion in a new solar panel factory in the U.S., has reinforced Goldman Sachs' buy rating on the stock. Analyst Brian Lee maintains a price target of $292, suggesting a potential 46.8% upside from the previous closing price.
Strong Position for Future Growth
Lee believes that First Solar's recent amendments to contracts, providing upside related to U.S. manufacturing, demonstrate the company's pricing power and potential for ongoing leverage in future contracts. With the upcoming analyst day on September 7, First Solar has an opportunity to showcase its technology outlook, growth prospects, and profit trajectory. This event is expected to serve as another positive catalyst for the company, further bolstering investor confidence in its 2030 business model.
Positive Market Response
Investors have responded positively to First Solar's strong performance and growth prospects. The stock has rallied by 32.7% in 2023, and on Friday, it surged more than 11% during premarket trading. This indicates growing investor interest and confidence in First Solar's ability to capitalize on the expanding solar energy market. With its solid financials and strategic investments, the company is well-positioned for future success.
Goldman Sachs remains bullish on First Solar, citing its strong second-quarter performance and strategic investments. The investment bank maintains a buy rating on the stock and expects further upside potential. Investors are encouraged by First Solar's upcoming analyst day, where the company will provide insights into its technology outlook, growth trajectory, and profit potential. With a 2030 business model and a new solar panel factory in the works, First Solar is poised to capitalize on the growing demand for renewable energy.
Hot Take: First Solar's Success Signals Promising Opportunities for New Solar Businesses
First Solar's strong performance in the second quarter and the continued bullish outlook from Goldman Sachs highlight the potential for growth and success in the solar energy industry. This news not only presents a positive outlook for existing companies like First Solar but also offers promising opportunities for new businesses looking to enter the renewable energy market.
The fact that First Solar exceeded revenue and earnings expectations is a testament to the increasing demand for clean and sustainable energy solutions. This market trend indicates that consumers and businesses are actively seeking out renewable energy options, opening up a vast untapped market for innovative solar businesses.
Furthermore, First Solar's plans to invest $1.1 billion in a new solar panel factory in the U.S. further emphasizes the optimistic outlook for the industry. This investment not only provides First Solar with additional manufacturing capabilities but also creates a ripple effect that benefits the broader solar supply chain and stimulates job growth.
With the upcoming analyst day, where First Solar will present its technology outlook, growth prospects, and profit potential, new businesses can gain valuable insights and strategies to emulate. Learning from a successful industry leader can inform new companies on how to position themselves strategically and capitalize on the growing demand for renewable energy.
Overall, First Solar's continued success and positive market response indicate a fertile landscape for new solar businesses. By focusing on innovative technologies, sustainability, and strategic positioning, new companies can harness the increasing demand for clean energy and carve out their own success stories in the booming solar industry.Article First Published at: https://www.cnbc.com/2023/07/28/this-solar-energy-stock-could-surge-nearly-50percent-says-goldman.html