- First Solar (NASDAQ:FSLR) -3% premarket, recovering roughly half of losses following its Q2 earnings miss; Needham's upgrade of shares to Buy from Hold may be helping.
- In explaining the upgrade, with a $75 price target, the firm cites factors including a high likelihood of a FSLR yieldco, thus creating meaningful value; positive metrics supporting greater growth trajectory ahead; near-term opportunities created by the U.S. tariffs on Chinese modules; and strong efficiency gains.
- Although Q2 results were weak due to "lumpy" timing of project revenue, Needham says it is not concerned and instead focused on FSLR's strong YTD bookings, increased expected revenue and long-term pipeline expansion, suggesting strengthening of FSLR's business.
- Also, Brean Capital maintains its Buy rating and $83 price target, saying FSLR's Q2 results were unexpected but the shortfall is not material to the stock's valuation; the firm notes FSLR's cadmium telluride technology efficiency has surpassed crystalline, which it considers a significant positive going forward (Briefing.com).