Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 26 Aug, 24 | FSLR | Buy | USD 231.07 | USD 257.0 | USD 280.0 | Same day | 21.2% |
Data Powered by EOD Historical Data (“EODHD”).
First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.
Enhancing Profitability: Gross Margin of 43.6% in Q1 FY24 vs 20.4% in Q1 FY23
Increased Shareholders' Wealth: ROE of 3.5% in Q1 FY24 vs Industry Median of 2.1%
Lower Liquidity: Current Ratio of 2.41x in Q1 FY24 vs Industry Median of 3.45x
Higher Cash Cycle: 272.3 Days in Q1 FY24 vs Industry Median of 176.2 Days
Dependence on Thin-Film Technology, Project Execution and Management, Production Capacity and Scaling Issues, Geopolitical and Trade Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 231.07 | 194.0 | 257.0 | 280.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
FSLR’s stock price has shown remarkable resilience in the face of lower levels, suddenly shifting upwards and hinting at a possible upside move. Additionally, the 14-period Relative Strength Index (RSI) has started to reverse its downward trend, suggesting a shift in market sentiment towards optimism. However, it's worth noting that the 21-simple moving average is currently below the price, which could serve as an immediate support level for the stock.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to First Solar, Inc. (NASDAQ: FSLR) at its closing price of USD 231.07 as of Aug 23, 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Solar
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FSLR First Solar Inc |
3.05 1.35% | 228.69 | 28.97 | 13.44 | 5.89 | 2.92 | 5.44 | 14.89 |
| ENPH Enphase Energy Inc |
1.41 1.35% | 105.58 | 64.37 | 38.91 | 6.95 | 16.18 | 6.78 | 26.01 |
| NXT Nextracker Inc. Class A Common Stock |
0.27 0.75% | 35.40 | 16.44 | 12.44 | 2.71 | 15.50 | 2.46 | 15.56 |
| XISHY Xinyi Solar Holdings Limited |
-0.53 5.39% | 9.31 | 11.55 | 14.93 | 0.22 | 1.24 | 0.24 | 1.12 |
| XNYIF Xinyi Solar Holdings Limited |
- -% | 0.56 | 10.10 | 13.72 | 0.22 | 1.37 | 0.24 | 1.12 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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