The Section 201 Solar tariffs on bifacial panels will probably not be extended, which could potentially erode First Solar, Inc’s (NASDAQ:FSLR) pricing power, according to BofA Securities.
The First Solar Analyst: Julien Dumoulin-Smith downgraded the rating for First Solar from Buy to Neutral, while lowering the price target from $114 to $91.
The First Solar Thesis: The company’s margins are likely to come under pressure, given that the recent backlog additions suggest flat to declining pricing for 2023 and beyond, Dumoulin-Smith said in the downgrade note.
“More recent transactions such as for the Israel developer Energix suggest ~$0.25/w ASP (Average Selling Price) in the 2023-2025 timeframe,” the analyst mentioned.
He lowered the 2023 ASP estimate by 1 cent to 27 cents per watt. “Incremental delays in higher efficiency new products like CuRe would result in further ASP pressure. CuRe rollout was delayed with 3Q21; we look for an update,” Dumoulin-Smith further wrote.
FSLR Price Action: Shares of First Solar had declined by 5.58% to $72.08 at the time of publication Thursday.
