First Solar gains as Barclays upgrades to 'overweight'

Array Technologies

12/10/2023 12:49

** Shares of solar panel maker First Solar  FSLR.O  rise
3.8% to $157.2 premarket
    ** Barclays upgrades its rating on the stock to "overweight"
from "equal-weight', citing FSLR is better-positioned than
utility peers to weather macro risks
    ** While concerns about a slowdown in the utilities sector
from higher borrowing costs have grown, Barclays believes FSLR's
backlog of contracts gives the company an edge over peers 
    ** The British bank believes the valuation gap between FSLR
and the broader sector is too wide and that the stock is being
"overly penalized"; says current trade price is an attractive
entry point
    ** Barclays, however, cuts its PT on the stock to $224 from
$230, representing a 48% premium to the stock's last closing
price
    ** FSLR stock down about 20% since the start of July while
solar technology providers Array Technologies  ARRY.O  and
Nextracker Inc  NXT.O  have fallen about 6% and 7%, respectively
    ** Year-to-date, FSLR stock up 1.1% vs a 14% gain in the
broader S&P 500 index  .SPX 

 (Reporting by Amruta Khandekar in Bengaluru)