First Solar: Nearly The Cheapest It Has Been - Policy Risks Ahead

Summary

• FSLR's investment thesis has been temporarily destabilized by the ongoing US elections, with the country's future renewable policy hanging in the balance.
• Even so, with a robust backlog through 2030 and ongoing capacity additions, we believe that it remains well positioned to weather the near-term uncertainties.
• This is on top of the promising global/ US trends surrounding utility-scale solar/ renewable capacity growth in H1'24, with things to accelerate over the next few years.
• Combined with FSLR's secure top/ bottom-line expansions and cheap PEG non-GAAP ratio, we believe that it remains a Buy at every dip.
• It goes without saying that readers may want to monitor the developing election situation through November 2024, since its prospects will naturally be affected either way.

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FSLR's Investment Thesis Remains Extremely Cheap Despite The Immense Rally Thus Far

We previously covered First Solar, Inc. (NASDAQ:FSLR) in April 2024, discussing why we remained optimistic surrounding its cadmium telluride investment thesis, despite the

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.