By Sam Boughedda
Deutsche Bank analysts downgraded First Solar (NASDAQ:FSLR) to Hold from Buy but raised the firm's price target on the stock to $230 from $190 in a note to clients on Thursday.
In the memo, focused on solar stocks, the analysts say the firm downgraded the stock as they feel it is an opportune moment for investors to look for better risk/reward elsewhere after FSLR's stock rally of 45% since early November.
First Solar shares have fallen 1% to below the $206 level on Thursday. However, it is up more than 36% in 2023.
"We remain positive on the company, recognizing that the strong backlog and ASP profile is improving, but at this point, we believe the stock is fairly priced," the analysts wrote.
"First Solar is expected to announce further manufacturing capacity expansion in the US, where it would also take further advantage of tax credits, which could represent an upside catalyst for the stock, when it occurs. Yet, timing of the announcement remains uncertain."
The analysts stated that the firm would look to get more constructive if First Solar's share price sees a significant downside.