Goldman Sachs remains bullish on First Solar on the back of its second-quarter earnings and revenue beat. The company posted $1.59 earnings per share on $811 million in revenue, while analysts surveyed by Refinitiv had estimated 96 cents per share on revenue of $721 million. First Solar management also announced it would invest $1.1 billion for what would be its fifth solar panel factory in the U.S., expected to commission in the first half of 2026. What “had become a growing investor debate around timing that now appears set to serve as a positive catalyst sooner than most had anticipated,” analyst Brian Lee wrote in a Friday note. Lee reiterated his buy rating on shares. His price target of $292 implies 46.8% upside from where shares closed on Thursday. “Since the passage of the [Inflation Reduction Act], FSLR has cumulatively amended ~10GW of contracts to provide [average selling price] upside related to U.S. manufacturing, and we see more potential for ongoing pricing power leverage in future contracts/renegotiations,” Lee said. The analyst believes the company’s upcoming analyst day on September 7 will be another positive catalyst for the company. He expects First Solar to focus on its technology outlook, growth and profit trajectory, in addition to its 2030 business model. Shares have rallied 32.7% in 2023. The stock jumped more than 11% Friday during premarket trading. —CNBC’s Michael Bloom contributed to this report.
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